Agenda packet — Silicon Valley Clean Energy Board of Directors, October 12, 2022 (part 1 of 2)

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Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the Clerk for the Authority at (408) 721-5301 x1005. Notification 48 hours prior to the meeting will enable the Authority to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.105 ADA Title II).

US: +1 669-900-6833
Webinar ID: 946 1654 2031
In accordance with California Government Code Section 54953(e), in consideration of the Coronavirus (COVID-19), members of the Silicon Valley Clean Energy Board of Directors and staff have the option to participate in this meeting by teleconference.

Members of the public may also attend this meeting in person, or observe this meeting electronically by accessing the meeting via instructions above. Public Comments can be sent in advance of the meeting via email up to three hours before the meeting begins to Board Clerk Andrea Pizano at [email protected] and will be distributed to the Board of Directors. The public will also have an opportunity to provide comments during the meeting. Members of the public participating remotely and using Zoom may comment during public comment or the applicable agenda item by using the Raise Hand feature and you will be recognized by the Chair. Those using the telephone (audio only) feature should press star 9 on your phones to initiate the “Raise Hand” function in Zoom. You will then be announced, unmuted, and your time to speak will begin.

The public may provide comments on any matter listed on the Agenda. Speakers are customarily limited to 3 minutes each, however, the Board Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.

If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (“ADA”) please contact Board Clerk Andrea Pizano at [email protected] prior to the meeting for assistance.
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Liz Gibbons, Chair
City of Campbell
George Tyson, Vice Chair
Town of Los Altos Hills
Jon Robert Willey
City of Cupertino
Zach Hilton
City of Gilroy
Neysa Fligor
City of Los Altos
Rob Rennie
Town of Los Gatos
Evelyn Chua
City of Milpitas
Javed Ellahie
City of Monte Sereno
Yvonne Martinez Beltran
City of Morgan Hill
Margaret Abe-Koga
City of Mountain View
Tina Walia
City of Saratoga
Larry Klein
City of Sunnyvale
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
AGENDA
Call to Order
Roll Call
Public Comment on Matters Not Listed on the Agenda
The public may provide comments on any matter not listed on the Agenda provided that it is within the subject matter jurisdiction of SVCE. Speakers are customarily limited to 3 minutes each, however, the Board Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.

Consent Calendar (Action)
1a) Approve Minutes of the September 14, 2022, Board of Directors Meeting 1b) Approve Minutes of the September 14, 2022, Board of Directors Special Meeting
1c) Receive August 2022 Treasurer Report
1d) Adopt Resolution Authorizing Public Meetings to Continue to Be Held Via Teleconferencing Pursuant to Government Code Section 54953(e) and Making Findings
1e) Adopt FY23 SVCE Strategic Work Plan
1f) Authorize the Chief Executive Officer to Negotiate and Enter into a New Engagement with Meyers | Nave for Legal Services
1g) Review and Approve Updates to SVCE Customer Confidentiality Policy 1h) Approve Audit Committee Membership of Three Members 1i) Receive Q3 2022 Decarbonization Strategy and Programs Roadmap Update
1j) Executive Committee Report
1k) Finance and Administration Committee Report
1l) Audit Committee Report
1m) Legislative and Regulatory Response to Industry Transition 2022 Ad Hoc Committee Report
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Liz Gibbons, Chair
City of Campbell
George Tyson, Vice Chair
Town of Los Altos Hills
Jon Robert Willey
City of Cupertino
Zach Hilton
City of Gilroy
Neysa Fligor
City of Los Altos
Rob Rennie
Town of Los Gatos
Evelyn Chua
City of Milpitas
Javed Ellahie
City of Monte Sereno
Yvonne Martinez Beltran
City of Morgan Hill
Margaret Abe-Koga
City of Mountain View
Tina Walia
City of Saratoga
Larry Klein
City of Sunnyvale
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
1n) California Community Power Report
Regular Calendar
2) CEO Report (Discussion)
3) Approve SVCE 2022 Integrated Resource Plan (Action)
4) Authorize the Chief Executive Officer to Approve or Execute Agreements with Firms Providing Services to Initiate SVCE to Execute Its Second Prepay (Action)
5) Updating SVCE’s Investment Policy and Directing PFM Asset Management to Implement full Scope of work as SVCE’s Investment Advisor (Action)
6) New Construction Reach Code Update (Presentation)
Board Member Announcements and Direction on Future Agenda Items Public Comment on Closed Session
The public may provide comments regarding the Closed Session item(s) just prior to the Board beginning the Closed Session. Closed Sessions are not open to the public.

Convene to Closed Session
Conference with Legal Counsel – Anticipated Litigation
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (one potential case)
Report from Closed Session
Adjourn
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Silicon Valley Clean Energy Authority
Board of Directors Meeting
Wednesday, September 14, 2022
7:00 pm
Cupertino Community Hall
10350 Torre Avenue
Cupertino, CA
Pursuant to State of California Gov’t Code Section 54953 (e) the meeting was conducted via teleconference with an option for members of the Board of Directors and staff to participate in person.

DRAFT MINUTES
Call to Order:

Chair Gibbons called the Regular Meeting to order at 7:00 p.m.

Prior to Roll Call, General Counsel Trisha Ortiz advised Chair Gibbons to report out from the Special Meeting held immediately prior; Chair Gibbons noted there was nothing to report.

Roll Call

Present:

Liz Gibbons (Chair), Campbell
George Tyson (Vice Chair), Los Altos Hills
Jon Robert Willey, Cupertino
Neysa Fligor, Los Altos
Rob Rennie, Los Gatos
Evelyn Chua, Milpitas
Javed Ellahie, Monte Sereno
Yvonne Martinez Beltran, Morgan Hill
Margaret Abe-Koga, Mountain View
Tina Walia, Saratoga
Gustav Larsson, Sunnyvale
Otto Lee, Santa Clara County

Absent:

Zach Hilton, Gilroy
Chair Gibbons, Vice Chair Tyson, Alternate Director Larsson and Director Willey attended in person; all other Directors attended via teleconference.

Public Comment on Matters Not Listed on the Agenda
No speakers.

Consent Calendar
General Counsel Ortiz provided a report summary of Item 1d) Approve Amendment No. 5 to Employment Agreement for Chief Executive Officer, noting the amendment reflects the following:

Item 1a Draft Minutes: Sept. 14, 2022 Regular Meeting
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Increases the annual salary from $384,000 to $422,400;
Allows the CEO to elect to receive an additional $1,000 in lieu of participating in the group medical insurance plan as additional compensation; and
Provides additional 80 hours of management leave time to be used before September 30, 2023.

There were no questions or comments from the Board; there were no requests from the public to speak on any matter on the Consent Calendar.
1a) Approve Minutes of the August 10, 2022, Board of Directors Meeting 1b) Receive July 2022 Treasurer Report
1c) Adopt Resolution Authorizing Public Meetings to Continue to Be Held Via Teleconferencing Pursuant to Government Code Section 54953(e) and Making Findings 1d) Approve Amendment No. 5 to Employment Agreement for Chief Executive Officer 1e) Approve General and Administrative Policy #7: Chief Executive Officer Absence Policy 1f) Authorize CEO to Execute a 5-Year Agreement with Adapt2 Solutions, Inc. for Deal Capture and Settlements Software
1g) Adopt Resolution Establishing October 5, 2022 as Clean Air Day 1h) Authorize the Chief Executive Officer to Execute a Two-year Agreement with Braun Blaising Smith Wynne P.C. (“BBSW”)
1i) Authorize the Chief Executive Officer to Execute a Three-Year Agreement with Keyes and Fox, LLP for Legal Services
1j) Authorize the Chief Executive Officer to Execute Agreement with Maher Accountancy for Accountant Services
1k) Authorize the CEO to Approve Agreement with Pisenti & Brinker, LLP for Financial Audit Services for the year ending September 30, 2022
1l) Authorize the Chief Executive Officer to Execute an Agreement for FY22-23 with Richards, Watson & Gershon for Legal Services
1m) Executive Committee Report
1n) Finance and Administration Committee Report
1o) Audit Committee Report
1p) Legislative and Regulatory Response to Industry Transition 2022 Ad Hoc Committee Report 1q) California Community Power Report
MOTION: Director Chua moved and Director Martinez Beltran seconded the motion to approve the Consent Calendar, Items 1a through 1q.

The motion carried unanimously by verbal roll call vote with Director Hilton absent.

Regular Calendar
2) CEO Report (Discussion)
CEO Girish Balachandran addressed the following in his CEO report:
• Introductions of the following new employees: Juliette Pascual, Community Outreach Fellow, and Alhad Dighe, Fleet Electrification Fellow; both provided brief welcome comments; • Announcement that the SVCE Community Decarbonization Demonstration Grant and Community Decarbonization Engagement Grant would be opening this month; Item 1a Draft Minutes: Sept. 14, 2022 Regular Meeting

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• Announcement that SVCE would be pursuing a second prepay agreement, noting CFO and Director of Finance and Administration Amrit Singh would be leading the effort; • Reminder of invitation to an Electrification Reach Code event for elected officials taking place on September 29, 2022; and
• Comments on the recent heat wave that occurred the following week, with gratitude to the Board of Directors for their response in sharing Flex Alert information, SVCE customers who used backup generation during the heat wave, and acknowledgment of staff and their outreach efforts to customers to ensure they had enough warning to get things in place.

Chair Gibbons shared her thanks to all for the heat wave response.

Director Martinez Beltran noted the heat wave affected the City of Morgan Hill particularly hard, and suggested others who may have had a similar experience get together to speak with the CPUC regarding gaps in infrastructure and problems identified.

Chair Gibbons suggested a follow up discussion, possibly at the Executive Committee level, to discuss further.
3) Update on Strategic Plan and Adopt FY23 SVCE Strategic Focus Areas (Action) CEO Balachandran presented a PowerPoint presentation on the proposed FY23 SVCE Strategic Focus Areas which included:
24x7 Clean Energy: Explore 24x7 clean energy delivery at scale, to improve on the current 100% clean energy goal
Customer Base & Electrification: Grow Customer Base & Offerings, Emphasize Electrification Inflation Reduction Act: Accelerate deployment of currently adopted decarbonization strategies and goals; evaluate and capitalize on the Inflation Reduction Act & California state budget climate funds to further improve programs
Finance: Leverage Balance Sheet for Structured Financing and use financing solutions to increase impact of decarbonization program offerings, especially to lower-income customers Employee: Be the Employer of Choice, and Increase Staffing CEO Balachandran responded to a board member question regarding the mention of accelerated deployment of goals in the Inflation Reduction Act focus area.

Chair Gibbons opened Public Comment.

No speakers.

Chair Gibbons closed Public Comment.

MOTION: Director Martinez Beltran moved and Director Abe-Koga seconded the motion to approve the update on the Strategic Plan and adopt FY23 SVCE Strategic Focus Areas.

The motion carried unanimously by verbal roll call vote with Director Hilton absent. 4) Adopt the FY 2022-23 Recommended Operating Budget and Updated Reserves Policy (Action)
Amrit Singh, CFO and Director of Administrative Services, introduced the item and presented a PowerPoint presentation on SVCE’s FY 2022-23 recommended operating budget and updated reserves policy.

Chair Gibbons opened Public Comment.

No speakers.

Chair Gibbons closed Public Comment.

Item 1a Draft Minutes: Sept. 14, 2022 Regular Meeting

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MOTION: Director Martinez Beltran moved and Director Abe-Koga seconded the motion to approve Resolution 2022-21 adopting the FY 2022-23 Operating Budget, and updated Financial Reserves Policy.

The motion carried unanimously by verbal roll call vote with Director Hilton absent. 5) Authorize the Chief Executive Officer to Execute Necessary Agreements for a Resource Adequacy Resource from AES Clean Energy Development, LLC (Action) Charles Grinstead, Senior Manager of Power Resources, introduced the item and presented a PowerPoint presentation requesting approval of the mid-term reliability Baldy Mesa resource adequacy agreement.

Staff responded to a board member question regarding the extension of Diablo Canyon and its impact on the request.

Chair Gibbons opened Public Comment.

Bruce Karney questioned: 1) demand response as a way to balance consumption of electricity with generation during heat waves and other times, and 2) critical peak pricing. Karney requested the CEO comment on the potential for SVCE offering a critical peak pricing rate plan, and whether the state may begin to accept demand reduction through OhmConnect, and similar programs, as being equally valid to building new generation.

Chair Gibbons closed Public Comment.

CEO Balachandran noted he would be happy to discuss with Mr. Karney offline, and commented critical peak pricing is something SVCE would like to do, OhmConnect is a great idea, and spoke in support of automatic demand response.

MOTION: Director Lee moved and Director Fligor seconded the motion to delegate authority for the CEO to execute the Baldy Mesa RA-only agreement with the following parameters:
10-year term Resource Adequacy Agreement with expected delivery from June 1, 2023; Up to 75 megawatts (MWs) of lithium-ion battery incremental capacity; and The total contract amount not-to-exceed $81,477,000
The motion carried unanimously by verbal roll call vote with Director Hilton absent. 6) Integrated Resource Plan Status Update (Discussion)
Maren Wenzel, Senior Manager of Energy Policy and Regulatory Analysis, presented a PowerPoint presentation on SVCE’s Integrated Resource Plan, which included procedural background and context, draft results, and next steps.

Chair Gibbons opened Public Comment.

Bruce Karney thanked staff for the presentation and inquired if it is required to file information about the anticipated prices over the next 8-13 years, and if not with the state, can they be shared with the SVCE board next month.

Chair Gibbons closed Public Comment.

Senior Manager of Energy Policy and Regulatory Analysis Wenzel responded to Mr. Karney that CCAs are not obligated to discuss their rate forecasts, but there is an obligation to discuss the associated costs of the portfolios.

Item 1a Draft Minutes: Sept. 14, 2022 Regular Meeting

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Senior Manager of Energy Policy and Regulatory Analysis Wenzel provided additional information on the draft results summary.

Board members provided comments and feedback on the recommended approach for the IRP. 7) New Construction Reach Code Update (Presentation)
Zoe Elizabeth, Deputy Director of Decarbonization Programs and Policy, presented a PowerPoint presentation providing a status update on reach code efforts and upcoming action items.

Chair Gibbons opened Public Comment.

No speakers.

Chair Gibbons closed Public Comment.

Board Member Announcements and Future Agenda Items
Director Abe-Koga announced the City of Mountain View City Council voted to accept a grant from SVCE to build a community center resiliency hub, which would be used to build a battery storage system to connect with the Mountain View Community Center’s solar system. Director Abe-Koga encouraged other member agencies to pursue the grants from SVCE on energy conservation and resiliency projects.

Director Chua announced the City of Milpitas would be launching a Simple Mobile Access to Reliable Transit (SMART) pilot program aimed at providing a transit solution to the City of Milpitas.

Director Martinez Beltran announced the City of Morgan Hill would be launching MoGo Morgan Hill Quick Ride rideshare service.

Chair Gibbons encouraged the Board of Directors and member agency electeds to attend the virtual reach code event on September 29, 2022.

Adjourn
Chair Gibbons adjourned the meeting at 8:50 p.m.

ATTEST:
_____________________________
Andrea Pizano, Board Secretary
Item 1a Draft Minutes: Sept. 14, 2022 Regular Meeting

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Silicon Valley Clean Energy Authority
Board of Directors Special Meeting
Wednesday, September 14, 2022
6:30 pm
Cupertino Community Hall
10350 Torre Avenue
Cupertino, CA
Pursuant to State of California Gov’t Code Section 54953 (e) the meeting was conducted via teleconference with an option for members of the Board of Directors and staff to participate in person.

DRAFT MINUTES
Call to Order:

Chair Gibbons called the Special Meeting to order at 6:33 p.m.

Roll Call

Present:

Liz Gibbons (Chair), Campbell
George Tyson (Vice Chair), Los Altos Hills
Jon Robert Willey, Cupertino
Neysa Fligor, Los Altos
Rob Rennie, Los Gatos
Evelyn Chua, Milpitas (arrived following roll call)
Margaret Abe-Koga, Mountain View
Tina Walia, Saratoga
Gustav Larsson, Sunnyvale
Otto Lee, Santa Clara County

Absent:

Zach Hilton, Gilroy
Javed Ellahie, Monte Sereno
Yvonne Martinez Beltran, Morgan Hill
Chair Gibbons, Vice Chair Tyson, and Alternate Director Larsson attended in person; all other Directors attended via teleconference.

Public Comment on Matters Not Listed on the Agenda
No speakers.

Public Comment on Closed Session
No speakers.

Item 1b Draft Minutes: Sept. 14, 2022 SVCE Board of Directors Special Meeting r,, SILICON VALLEY \:!,,/ CLEAN ENERGY

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Convene to Closed Session
Public Employee Performance Evaluation
Title: Chief Executive Officer
Conference with Labor Negotiators
Agency Representatives: Liz Gibbons, Chair, Board of Directors, George Tyson, Vice Chair, Board of Directors
Unrepresented Employee: Chief Executive Officer
Report from Closed Session
Prior to roll call during the regular meeting at 7:00 p.m., Chair Gibbons noted there was nothing to report from Closed Session.

Adjourn
The meeting was adjourned to the Regular Meeting at 7:00 p.m.

ATTEST:
_____________________________
Andrea Pizano, Board Secretary
Item 1b Draft Minutes: Sept. 14, 2022 SVCE Board of Directors Special Meeting

TREASURER REPORT
Fiscal Year to Date
As of August 31, 2022
(Preliminary & Unaudited)
Issue Date: October 12, 2022
Table of Contents
Page
Summary 2
Statement of Net Position 4
Statement of Revenues, Expenses & Changes in Net Position 5 Statement of Cash Flows 6-7
Actuals to Budget Report 8-10
Monthly Change in Net Position 11
Investments Report 12
Customer Accounts 13
Accounts Receivable Aging Report 14
Item 1c Treasurer Report - August 2022
Item 1c Treasurer Report - August 2022

SILICON VALLEY CLEAN ENERGY AUTHORITY
Financial Statement Highlights* ($ in 000's)
Financial Highlights for the month of August 2022:
> SVCE operations resulted in a change in net position for the month of $13.2 million and fiscal-year-to-date (FYTD) change in net position of $44.2 million. > Retail GWh sales for the month landed -5.2% below budget. > FYTD operating margin of $62.1 million or ~19.4% is below budget expectations of 26.6% operating margin for the fiscal year to date. > FYTD Power Supply costs are 5% above budget.
> SVCE is investing ~92% of available funds generating FYTD investment income of $0.26 million.

Amended
Chanae in Net Position Oct Nov Dec Jan Feb Mar Apr May June July Aua Sept Total Budget Actual 1,532 (4,526' (2,237 (6,275' (5,774' 1,734 10,904 6,764 13,067 15,819 13,165 44,172 61 ,611 Amended
Power Suooly Costs Oct Nov Dec Jan Feb Mar Apr May June July Aua Sept Total Budget Energy & REC's 11 ,938 15,483 13,478 17,209 15,665 20,556 11,419 14,537 15,435 17,504 17,603 170,828 Wholesale Sales (195) (15) - (82) (182) (208) (236) (23) (56) (18) (18) (1,031) Capacity 2,890 2,207 2,324 3,281 3,557 3,544 3,923 4,236 4,965 5,550 7,046 43,522 CAISO Charges (1,301) 205 2,286 1,116 1,004 (328) (1,124) (2,066) 1,721 2,130 1,D30 4,675 NEM Expense 3 152 (187) (200) (30) 151 39 617 897 761 674 2,878 Charge/Credit (IST/Net Rev' 1,189 (125' 759 1,855 2,020 3,029 4,966 5,864 7,316 3,955 6,621 37,450 Net Power Costs 14,525 17,908 18,660 23,179 22,035 26,744 18,989 23,166 30,279 29,882 32,957 - 258,323 274,979 Amended
other Oct Nov Dec Jan Feb Mar Apr May June July Aua Sept Total Budget Capital Expenditures 4 13 10 - 5 18 - 21 - 56 4 133 150 Enerciv Procirams 68 123 116 220 114 134 121 172 112 179 163 1,521 8,582 Amended
Load Statistics • GWh Oct Nov Dec Jan Feb Mar Apr May June July Aua Sept Total Budget Retail Sales Actual 302 288 327 322 286 306 284 294 322 347 343 3,421 Retail Sales Budqet 302 288 327 322 296 311 297 313 337 350 362 339 3,844 3,844 • The financial results in this report are preliminary and subject to change pending closing of the books for the fiscal year. Any potential changes are not expected to be significant.

Item 1c Treasurer Report - August 2022
YTD EXPENSES OlharWca and Ratloa
Personnel Working Capital $216,719,947

2.2% Current Ratio 5.2
Operating Margin 18.7%
Expense Coverage Days 227
Depreciation Long-Term Debt $0 0.0%
Total Accounts 277,41 5
Opt-Out Accounts (Month) 89 G&A Opt-Out Accounts (FYTD) 532 0.8% Opt-Up Accounts (Month) (5)
Opt-Up Accounts (FYTD) 211
Retail Sales - Month Retail Sales - YTD
400.0

60.0 53 335.1 .5 317.7 350.0

50.0 300.0
~ 250.0 219.1 <11 40.0 0
I C = 200.0 0 26.3 = 30.0 ~ 150.0
~ 20.0 I 100.0

50.0 10.0 0.0

0.0 Actual Amended FY20/21
Actual Amended Budget FY20/21 Budget
Controllable O&M - Month Controllable O&M - YTD

40.0 34.6 300.0 274.9 265.9 33.6

35.0 250.0

30.0 ~ 25.0 <11 200.0 C
0 .5! = 150.0 20.0
~ 15.0 ~ 100.0

10.0 5.0 50.0

0.0 0.0
Actual Amended FY20/21 Actual Amended FY20/21
Budget Budget
Current Assets
Cash & Cash Equivalents $ 180,020,331
Accounts Receivable, net of allowance 52,086,392
Accrued Revenue 28,239,762
Other Receivables 23,550
Prepaid Expenses 2,341,870
Deposits 5,555,431
Restricted cash 161,951
Total Current Assets 268,429,287
Noncurrent assets
Capital assets, net of depreciation 358,374
Deposits 45,330
Total Noncurrent Assets 403,704
Total Assets 268,832,991
Current Liabilities
Accounts Payable 841,355
Accrued Cost of Electricity 37,148,035
Other accrued liabilities 850,834
User Taxes and Energy Surcharges due to other gov'ts 1,532,165 Supplier securit deposits 11,175,000
Total Current Liabilities 51,547,389
Noncurrent Liabilities
Supplier security deposits 7,031,250
Total noncurrent liabilities 7,031,250
Total Liabilities 58,578,639
Net investment in capital assets 358,374
Restricted for security collateral 161,951
Unrestricted (deficit) 209,734,027
Total Net Position $ 210,254,352

NET POSITION

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF NET POSITION
As of August 31, 2022
ASSETS

LIABILITIES
Item 1c Treasurer Report - August 2022

OPERATING REVENUES
Electricity Sales, Net $ 313,676,123
GreenPrime electricity premium 1,597,123
Other income 22,750
Liquidated damages 2,371,250
TOTAL OPERATING REVENUES 317,667,246

OPERATING EXPENSES
Cost of Electricity 258,320,039
Contract services 8,292,088
Staff compensation and benefits 6,084,036
General & Administrative 2,138,420
Depreciation 90,828
TOTAL OPERATING EXPENSES 274,925,411
OPERATING INCOME(LOSS) 42,741,835

NONOPERATING REVENUES (EXPENSES)
Grant Income 1,294,077
Interest Income 259,167
Financing costs (123,213)
TOTAL NONOPERATING REVENUES (EXPENSES) 1,430,031
CHANGE IN NET POSITION 44,171,866
Net Position at beginning of period 166,082,486
Net Position at end of period $ 210,254,352

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF REVENUES, EXPENSES
October 1, 2021 through August 31, 2022

AND CHANGES IN NET POSITION
Item 1c Treasurer Report - August 2022

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 280,651,409
Receipts from liquidated damages $ 2,371,250
Other operating receipts 11,275,501
Payments to suppliers for electricity (256,215,979)
Payments for other goods and services (11,144,967)
Payments for staff compensation and benefits (6,022,225) Tax and surcharge payments to other governments (4,826,382) Net cash provided (used) by operating activities 16,088,607

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Grant revenue received 1,294,077
Finance costs paid (135,697)
Net cash provided (used) by financing activities 1,158,380

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets (132,436)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 259,167
Net change in cash and cash equivalents 17,373,718
Cash and cash equivalents at beginning of year 162,808,564 Cash and cash equivalents at end of period $ 180,182,282 Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) $ 180,020,331
Restricted cash 161,951
Cash and cash equivalents $ 180,182,282

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF CASH FLOWS
October 1, 2021 through August 31, 2022
Item 1c Treasurer Report - August 2022
Operating Income (loss) $ 42,741,835
Adjustments to reconcile operating income to net cash
provided (used) by operating activities
Depreciation expense 90,828
Revenue adjusted for uncollectible accounts (500,000)
(Increase) decrease in net accounts receivable (25,596,208) (Increase) decrease in energy settlements receivable 269,012 (Increase) decrease in other receivables 206,935
(Increase) decrease in accrued revenue (13,829,142)
(Increase) decrease in prepaid expenses 36,366
(Increase) decrease in current deposits (4,829,347)
Increase (decrease) in accounts payable (696,021)
Increase (decrease) in accrued cost of electricity 1,022,146 Increase (decrease) in accrued liabilities 221,275
Increase (decrease) in energy settlements payable 5,298,798 Increase (decrease) in taxes and surcharges due to other governments 477,130 Increase (decrease) in supplier security deposits 11,175,000 Net cash provided (used) by operating activities $ 16,088,607

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES

SILICON VALLEY CLEAN ENERGY AUTHORITY
STATEMENT OF CASH FLOWS (Continued)
October 1, 2021 through August 31, 2022
Item 1c Treasurer Report - August 2022
FYTD FYTD FY 2021-22 FY 2021-22
OPERATING REVENUES Actual Amended Budget $ % Amended Budget Remaining Budget Energy Sales $316,405,263 $334,118,788 -$17,713,525 -5% $384,498,000 $68,092,737 Green Prime Premium 1,597,123 964,455 632,668 66% 1,005,000 (592,123) Liquidated damages 2,371,250 2,371,250
TOTAL OPERATING REVENUES 320,373,636 335,083,243 (14,709,607) -4% 385,503,000 67,500,614

ENERGY EXPENSES
Power Supply 258,320,039 246,026,791 12,293,248 5.0% 274,979,000 16,658,961 Operating Margin 62,053,597 89,056,452 (27,002,855) -30% 110,524,000

28.7%

OPERATING EXPENSES
Data Management 2,912,964 2,978,628 (65,664) -2% 3,249,000 336,036 PG&E Fees 1,083,152 1,329,116 (245,964) -19% 1,450,000 366,848 Salaries & Benefits 6,084,036 7,823,421 (1,739,385) -22% 8,535,000 2,450,964 Professional Services 2,674,555 5,219,864 (2,545,309) -49% 5,669,000 2,994,445 Marketing & Promotions 524,989 833,318 (308,329) -37% 908,000 383,011 Notifications 116,430 120,313 (3,883) -3% 131,000 14,570 Lease 458,631 481,250 (22,619) -5% 525,000 66,369
General & Administrative 1,131,297 1,038,564 92,733 9% 1,225,000 93,703 TOTAL OPERATING EXPENSES 14,986,054 19,824,474 (4,838,420) -24% 21,692,000 6,705,946 OPERATING INCOME/(LOSS) 47,067,543 69,231,978 (22,164,435) -32% 88,832,000 41,764,457

NON-OPERATING REVENUES
Other Income 22,750 45,833 (23,083) -50% 50,000 27,250
Investment Income 259,167 275,000 (15,833) -6% 300,000 40,833 TOTAL NON-OPERATING REVENUES 281,917 320,833 (38,916) -12% 350,000 68,083

NON-OPERATING EXPENSES
Financing 123,213 36,667 86,546 236% 40,000 (83,213)

CAPITAL EXPENDITURES, TRANSFERS,
& OTHER
Capital Outlay 132,527 137,500 (4,973) -4% 150,000 17,473 Transfer to Programs Fund 6,216,337 6,216,337 - 0% 6,781,000 564,663 Nuclear Allocation 550,000 550,000 - 0% 600,000 50,000
Double Down Programs Allocation 15,583,333 15,583,333 - 0% 17,000,000 1,416,667 Customer Bill Relief 1,435,063 2,750,000 (1,314,937) -48% 3,000,000 1,564,937 TOTAL OTHER USES 23,917,260 25,237,170 (1,319,910) -5% 27,531,000 3,613,740

NET INCREASE(DECREASE) IN AVAILABLE
FUND BALANCE $23,308,987 $44,278,974 -$20,969,987 -47% $61,611,000 Variance

SILICON VALLEY CLEAN ENERGY AUTHORITY

BUDGETARY COMPARISON SCHEDULE
October 1, 2021 through August 31, 2022
Item 1c Treasurer Report - August 2022
l

ADOPTED ACTUAL/
Amended BUDGET ADOPTED
REVENUE & OTHER SOURCES: BUDGET ACTUAL REMAINING BUDGET Transfer from Operating Fund $ 24,381,000 $ 22,349,670 $ 2,031,330 91.7% EXPENDITURES & OTHER USES:

Program expenditures 8,581,851 1,521,168 7,060,683 17.7% Net increase (decrease) in fund balance $ 15,799,149 $20,828,502 Fund balance at beginning of period 5,837,711
Fund balance at end of period $26,666,213

ADOPTED ACTUAL/
Amended BUDGET ADOPTED
REVENUE & OTHER SOURCES: BUDGET ACTUAL REMAINING BUDGET Transfer from Operating Fund * $ - $ - $ -
EXPENDITURES & OTHER USES:

Program expenditures * 2,850,000 7,322 2,842,678 0.3%
Net increase (decrease) in fund balance $ (2,850,000) (7,322) Fund balance at beginning of period 7,990,315
Fund balance at end of period $7,982,993

SILICON VALLEY CLEAN ENERGY AUTHORITY

BUDGETARY COMPARISON SCHEDULE
October 1, 2021 through August 31, 2022

CUSTOMER RELIEF & COMMUNITY RESILIENCY FUND

PROGRAM FUND

BUDGETARY COMPARISON SCHEDULE
October 1, 2021 through August 31, 2022
Item 1c Treasurer Report - August 2022
,,
Net Increase (decrease) in available fund balance
per budgetary comparison schedule $ 23,308,987
Adjustments needed to reconcile to the changes
in net position in the Statement of Revenues,
Expenses and Changes in Net Position
Subtract depreciation expense (90,828)
Subract program expense not in operating budget (1,521,168) Subract CRCR expense not in operating budget (7,322)
Add back transfer to Program fund 22,349,670
Add back capital asset acquisition 132,527
Change in Net Position 44,171,866

SILICON VALLEY CLEAN ENERGY AUTHORITY

BUDGET RECONCILIATION TO STATEMENT OF

REVENUES, EXPENSES AND CHANGES IN NET POSITION
October 1, 2021 through August 31, 2022

OPERATING FUND
Item 1c Treasurer Report - August 2022
,..

October November December January February March April May June July August September YTD

OPERATING REVENUES
Electricity sales, net $ 17,365,080 $ 14,621,707 $ 17,815,729 $ 17,228,581 $ 16,277,554 $ 29,781,167 $ 31,256,974 $ 31,334,686 $ 44,768,429 $ 45,749,089 $ 47,477,127 $ 313,676,123 Green electricity premium 80,961 $ 60,556 $ 95,594 $ 462,687 $ 103,634 $ 131,601 $ 116,747 $ 141,505 $ 131,322 $ 132,086 $ 140,430 1,597,123 Other Income 1,000 $ 2,500 $ 1,000 $ 3,500 $ 2,250 $ 5,251 $ 1,000 $ 2,000 $ 1,000 $ 1,000 $ 2,249 22,750 Liquidated damages 922,250 $ 1,302,000 $ - $ - $ - $ - $ - $ 147,000 2,371,250 Total operating revenues 17,447,041 14,684,763 17,912,323 18,617,018 17,685,438 29,918,019 31,374,721 31,478,191 44,900,751 45,882,175 47,766,806 - 317,667,246

OPERATING EXPENSES
Cost of electricity 14,524,607 17,907,845 18,660,060 23,179,137 22,034,894 26,743,821 18,988,683 23,163,741 30,278,708 29,881,798 32,956,745 258,320,039 Staff compensation and benefits 448,844 465,162 593,320 572,350 538,861 551,232 540,655 555,023 630,611 555,633 632,345 6,084,036 Data manager 263,759 263,759 262,863 263,514 264,092 264,817 265,002 - 531,059 266,835 267,264 2,912,964 Service fees - PG&E 97,254 96,768 104,341 97,053 97,084 97,331 97,671 - 199,269 98,199 98,182 1,083,152 Consultants and other professional fees 370,413 341,404 376,273 473,924 393,452 363,558 395,856 744,189 28,855 318,955 489,093 4,295,972 General and administration 209,985 134,289 152,437 306,490 129,063 161,762 179,349 247,909 175,222 255,408 186,506 2,138,420 Depreciation 7,289 8,162 7,774 7,716 7,853 8,168 8,169 8,558 8,558 9,230 9,351 90,828 Total operating expenses 15,922,151 19,217,389 20,157,068 24,900,184 23,465,299 28,190,689 20,475,385 24,719,420 31,852,282 31,386,058 34,639,486 - 274,925,411 Operating income (loss) 1,524,890 (4,532,626) (2,244,745) (6,283,166) (5,779,861) 1,727,330 10,899,336 6,758,771 13,048,469 14,496,117 13,127,320 - 42,741,835

NONOPERATING REVENUES (EXPENSES)
Grant Income 1,294,077 - 1,294,077
Interest income 18,545 18,382 19,370 18,957 16,791 17,596 15,861 16,059 29,596 39,531 48,479 259,167 Financing costs (11,042) (11,626) (12,027) (11,042) (11,226) (11,042) (11,042) (11,041) (11,042) (11,042) (11,041) (123,213) Total nonoperating revenues (expenses) 7,503 6,756 7,343 7,915 5,565 6,554 4,819 5,018 18,554 1,322,566 37,438 - 1,430,031 CHANGE IN NET POSITION $ 1,532,393 $ (4,525,870) $ (2,237,402) $ (6,275,251) $ (5,774,296) $ 1,733,884 $ 10,904,155 $ 6,763,789 $ 13,067,023 $ 15,818,683 $ 13,164,758 $ - $ 44,171,866

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
October 1, 2021 through August 31, 2022
Item 1c Treasurer Report - August 2022
YTD
Return on Investments Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total $18,545 $18,382 $19,370 $18,957 $16,791 $17,596 $15,861 $16,059 $29,596 $39,531 $48,479 $0 $259,167 Portfolio Invested
Average daily portfolio available to invest* 152,976,979 155,897,345 155,743,105 157,270,808 153,138,549 145,837,752 137,341,613 133,261,734 132,574,141 145,457,337 153,975,169 Average daily portfolio invested 141,994,910 145,456,026 148,530,962 147,297,741 145,363,213 137,891,490 128,040,211 122,422,665 125,005,246 132,803,050 141,713,500 % of average daily portfolio invested 92.8% 93.3% 95.4% 93.7% 94.9% 94.6% 93.2% 91.9% 94.3% 91.3% 92.0% Detail of Portfolio
Opening Rate Current Rate Carrying Value
Interest
Earned
Money Market - River City Bank 1.26% 0.36% $160,949,180 $42,132 * Note: Balance available to invest does not include lockbox funds. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SILICON VALLEY CLEAN ENERGY AUTHORITY

INVESTMENTS SUMMARY
October 1, 2021 through August 31, 2022
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Item 1c Treasurer Report - August 2022

CUSTOMER ACCOUNTS
Item 1c Treasurer Report - August 2022

RESIDENTIAL ACCOUNTS
1/J 300
'ti
C: 246.9 247.2 247.4 247.5 248.1 248.3 248.5 249.0 249.3 249.6 249.9 ctl 250 1/J ::I
0 s::.

I- 200
150
100
50 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
- Actual - Budget

NON-RESIDENTIAL ACCOUNTS
1/J
'ti
30 27.7 27.6 27.6 27.4 27.4 27.4 27.4 27.4 27.5 27.5 27.5 C:
ctl
1/J
::I 25
0 s::.

I-20
15 10
5 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
- Actual - Budget

SILICON VALLEY CLEAN ENERGY AUTHORITY

ACCOUNTS RECEIVABLE AGING REPORT
October November December January February March April May June July August September 0 to 30 days 74.6% 66.6% 67.7% 70.4% 73.9% 77.7% 83.0% 80.6% 81.6% 84.6% 83.5% 31 to 60 days 8.3% 11.6% 9.1% 5.4% 6.9% 6.7% 4.5% 7.6% 7.6% 5.6% 7.7% 61 to 90 days 3.1% 3.7% 5.1% 3.9% 2.7% 2.7% 2.2% 2.0% 2.4% 2.4% 2.0% 91 to 120 days 2.0% 2.9% 3.0% 3.2% 2.5% 1.7% 1.7% 1.6% 1.3% 1.6% 1.6% Over 120 days 12.0% 15.1% 15.0% 17.1% 14.1% 11.1% 8.6% 8.1% 7.1% 5.9% 5.3%

TOTAL DUE
Bad Debt % (Budget)
1%
Accounts Receivable Days
51 Days
$53,574,972
Item 1c Treasurer Report - August 2022

AGE SUMMARY
$50,000,000
$45,000,000 $44,740,617
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000 $4,099,521 $2,829,115 1111 $1,047,572 $858,148 - $0
<30 days <60 days -<90 days <120 - days Older

Page 1 of 2 ends

Staff Report – Item 1d
Item 1d: Adopt Resolution Authorizing Public Meetings to Continue to Be Held Via Teleconferencing Pursuant to Government Code Section 54953(e) and Making Findings
From: Trisha Ortiz, General Counsel
Prepared by: Trisha Ortiz, General Counsel
Date: 10/12/2022

RECOMMENDATION
To continue meetings to be held via teleconferencing pursuant to Government Code Section 54953(e), adopt the attached Resolution 2022-22 making the findings required by Section 54953(e)(3).

BACKGROUND
Pursuant to Government Code Section 54953(b)(3) legislative bodies may meet by “teleconference” only if the agenda lists each location a member remotely accesses a meeting from, the agenda is posted at all remote locations, and the public may access any of the remote locations. Additionally, a quorum of the legislative body must be within the legislative body’s jurisdiction.

Due to the COVID-19 pandemic, the Governor issued Executive Order N-29-20, suspending certain sections of the Brown Act. Pursuant to the Executive Order, legislative bodies no longer needed to list the location of each remote attendee, post agendas at each remote location, or allow the public to access each location. Further, a quorum of the legislative body does not need to be within the legislative body’s jurisdiction. After several extensions, Executive Order N-29-20 expired on September 30, 2021.

On September 16, 2021 Governor Newsom signed AB 361, new legislation that amends the Brown Act to allow local agencies to meet remotely during Governor declared emergencies under certain conditions. AB 361 authorizes local agencies to continue meeting remotely without following the Brown Act’s standard teleconferencing provisions if the meeting is held during a state of emergency proclaimed by the Governor and either of the following applies: (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the agency has already determined or is determining whether, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

Due to the rise in COVID-19 cases caused by the Delta Variant, on September 21, 2021, the Santa Clara County Health Officer issued a recommendation that public bodies meet remotely due to the increased protection provided by social distancing. The Health Officer cited “unique characteristics” of government meetings that lead to increased risk of transmission, including the gathering of people from across communities, the need for everybody to participate (including those who are immunocompromised or unvaccinated), and difficulty ensuring compliance with vaccination and safety recommendations. In addition, the Health Officer has described the new Omicron variant as significantly more transmissible than prior variants of the virus.

Item 1d
/ A"\ SILICON VALLEY
~CLEAN ENERGY
Agenda Item: 1d Agenda Date: 10/12/2022

Page 2 of 2 ends

On October 13, 2021, the Board adopted its Resolution 2021-23 to authorize public meetings to be held via teleconferencing pursuant to Government Code section 54953(e).

Within thirty days after the first teleconferenced meeting held under AB 361, and every thirty days thereafter, in order to continue meeting by teleconference, the local agency’s legislative body must find that it has reconsidered the circumstances of the state of emergency and that either: (1) The state of emergency continues to directly impact the ability of the members to meet safely in person; or (2) State or local officials continue to impose or recommend measures to promote social distancing.

The list below identifies the board meeting dates and corresponding resolutions authorizing public meetings to continue to be held via teleconferencing pursuant to Government Code Section 54953(e) and directing staff to return with a resolution to make the findings necessary to continue meeting pursuant to Government Code section 54953(e):

November 10, 2021: 2021-26;
December 8, 2021: 2021-27;
January 12, 2022: 2022-02;
February 9, 2022: 2022-03;
March 9, 2022: 2022-07;
April 13, 2022: 2022-11;
May 11, 2022: 2022-13;
June 8, 2022: 2022-14, and
August 10, 2022: 2022-18; and
September 14, 2022: 2022-19

STRATEGIC PLAN
SVCE’s Board-adopted Strategic Plan identifies engaging the public as a goal of SVCE and remote meetings will better engage the public as long as COVID-19 is a threat to public health.

FISCAL IMPACT
Continuing to conduct remote public Board of Directors and Standing Committee meetings will not increase the cost of meetings.

ANALYSIS & DISCUSSION
The attached Resolution makes the periodic findings necessary to continue holding meetings under Government Code Section 54953(e). Specifically, the attached Resolution makes findings that the Board has reconsidered the circumstances of the COVID-19 state of emergency and that local officials continue to recommend measures to promote social distancing. As required by Government Code Section 54953(e)(3), the resolution makes the findings and provides that the findings will cover the period of time until the next regular meeting of the Board.

The resolution applies to both the Board of Directors and its Committees.

Staff will continue to monitor the situation and will return to the Board every 30 days or as needed with additional recommendations related to the conduct of public meetings.

ATTACHMENTS

1. Resolution 2022-22 Reconsidering Circumstances Of The COVID-19 State Of Emergency And Making Findings In Connection Therewith To Authorize Public Meetings To Be Held Via Teleconferencing Pursuant To Government Code Section 54953(e)
Item 1d
1 RESOLUTION 2022-22

SILICON VALLEY CLEAN ENERGY AUTHORITY
RESOLUTION NO. 2022-22

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SILICON

VALLEY CLEAN ENERGY AUTHORITY RECONSIDERING
CIRCUMSTANCES OF THE COVID-19 STATE OF EMERGENCY

AND MAKING FINDINGS IN CONNECTION THEREWITH TO

AUTHORIZE PUBLIC MEETINGS TO BE HELD VIA

TELECONFERENCING PURSUANT TO GOVERNMENT CODE
SECTION 54953(e)
WHEREAS, the Silicon Valley Clean Energy Authority (“Authority”) was formed on March 31, 2016 pursuant to a Joint Powers Agreement to study, promote, develop, conduct, operate, and manage energy programs in Santa Clara County; and WHEREAS, the Board of Directors (“the Board”) of Silicon Valley Clean Energy (“SVCE”) is committed to public access and participation in its meetings while balancing the need to conduct public meetings in a manner that reduces the likelihood of exposure to COVID-19; and
WHEREAS, all meetings of the Board of Directors and the other legislative bodies of SVCE are open and public, as required by the Ralph M. Brown Act (Cal. Gov.

Code 54950 – 54963), so that any member of the public may attend, participate, and watch the Board and other legislative bodies conduct their business; and WHEREAS, pursuant to Assembly Bill 361 legislative bodies of local agencies may hold public meetings via teleconferencing pursuant to Government Code Section 54953(e), without complying with the requirements of Government Code Section 54953(b)(3), if the legislative body complies with certain enumerated requirements in any of the following circumstances:

1. The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing.

2. The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

3. The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees; and WHEREAS, on March 4, 2020, Governor Newsom declared a State of Item 1d
Attachment 1
2 RESOLUTION 2022-22
Emergency in response to the COVID-19 pandemic (the “Emergency”) which remains in effect; and
WHEREAS, the Santa Clara Public Health Officer recommends that public bodies meet remotely to the extent possible, specifically including use of newly enacted AB 361.

WHEREAS, due to the ongoing COVID-19 pandemic and the need to promote social distancing to reduce the likelihood of exposure to COVID-19, the Board determined that meetings of the SVCE legislative bodies may be held via teleconferencing pursuant to Government Code Section 54953(e).

WHEREAS, to continue meeting pursuant to Government Code Section 54953(e), an agency must make periodic findings that: (1) the body has reconsidered the circumstances of the declared emergency; and (2) that any of the following circumstances exist: (a) the state of emergency continues to directly impact the ability of the members to meet safely in person, or (b) state or local officials continue to impose or recommend measures to promote social distancing.

NOW THEREFORE, the Board of Directors of the Silicon Valley Clean Energy Authority does hereby resolve, determine, and order as follows:

Section 1. The Recitals provided above are true and correct and are hereby incorporated by reference.

Section 2. The Board has reconsidered the circumstances of the COVID-19 state of emergency and local officials continue to recommend measures to promote social distancing.

Section 3. The Board and other legislative bodies of SVCE may continue to conduct their meetings pursuant to Government Code section 54953(e).

Section 4. Staff is hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution. Such action includes returning to the Board within 30 days and every 30 days thereafter to make the findings required by Section 54953(e)(3).

Section 5. This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED this 12th day of October 2022, by the following vote:

JURISDICTION NAME AYE NO ABSTAIN ABSENT
City of Campbell Director Gibbons
City of Cupertino Director Willey
City of Gilroy Director Hilton
City of Los Altos Director Fligor
Item 1d
Attachment 1
3 RESOLUTION 2022-22
Town of Los Altos Hills Director Tyson
Town of Los Gatos Director Rennie
City of Milpitas Director Chua
City of Monte Sereno Director Ellahie
City of Morgan Hill Director Martinez Beltran
City of Mountain View Director Abe-Koga
County of Santa Clara Director Lee
City of Saratoga Director Walia
City of Sunnyvale Director Klein
Chair
ATTEST:

Andrea Pizano, Board Clerk
Item 1d
Attachment 1

Page 1 of 2 ends

Staff Report – Item 1e
Item 1e: Adopt FY23 SVCE Strategic Work Plan
From: Girish Balachandran, CEO
Prepared by: Sanjay Natu, Internal Operations Program Manager Date: 10/12/2022

RECOMMENDATION
Staff recommends the SVCE Board of Directors adopt SVCE’s detailed Strategic Work Plan. This Strategic Work Plan will guide SVCE toward its mission of reducing dependence on fossil fuels by providing carbon free, affordable, and reliable electricity and innovative programs for the SVCE community.

BACKGROUND
On September 14, 2022, the SVCE Board approved five Strategic Focus Areas to guide the agency through the next fiscal year. These focus areas are also mirrored in the CEO’s annual goals. As part of the multiple discussions with the Board and committees from May through September, it was decided that the Mission and Measure of meeting the mission would not change. The CEO also reported that the detailed work plan would be updated and presented to the Board at the October meeting for approval.

The accompanying document details the goals and measures that comprise the detailed SVCE Strategic Work Plan. The workplan is a living document, managed in monthly meetings and priorities/changes will be discussed quarterly. We anticipate changes to the workplan in the following emerging areas:
- Next developments in Inflation reduction act
The attached SVCE Strategic Work Plan for 2022-23 outlines 21 goals and 81 measures.

The Mission did not change;
The Measure of Meeting the Mission did not change.

The following tables show how the strategic focus areas have changed from the previous fiscal year. The second table shows how each of the Board-approved strategic focus areas map to multiple goals and measures in the detailed work plan.
2021-22 Strategic Focus Areas
Additional Staffing to Maintain Capacity &
Organization Succession Planning
Operations Mode with PPA’s coming online
Procurement, Clean Energy Mix & Integration
Financial Stability & Trade-Offs
Internal Operations & Cyber Risk Management
Grow the organization to expand our strategic
efforts on climate change and decarbonization
Item 1e
/ A"\ SILICON VALLEY
~CLEAN ENERGY
Agenda Item: 1e Agenda Date: 10/12/2022

Page 2 of 2 ends

2022-23 Strategic Focus Areas Related Strategic Workplan Plan Goals/Measures
(G/M)
24x7 CLEAN ENERGY: Explore 24x7 clean
energy delivery at scale, to improve on the current
100% clean energy goal
G1/M1, G8/M1, G2/M2,
G1/M2, G10/M6
CUSTOMER BASE & ELECTRIFICATION: Grow
Customer Base & Offerings, Emphasize
Electrification
G7/M4, G8/M4, G8/M5,
G8/M6, G8/M2, G6/M1,
G6/M2, G10/M7,
G7/M2,G8/M7
INFLATION REDUCTION ACT: Accelerate
deployment of currently adopted decarbonization
strategies and goals; evaluate and capitalize on
the Inflation Reduction Act & California state
budget climate funds to further improve programs
G2/M4, G10/M1, G10/M2,
G10/M8, G9/M4, G10/M3,
G7/M5, G14/M1, G10/M5,
G10/M9, G4, G9/M1, G9/M2,
G9/M3, G7/M2, G5/M3, G7/M1
FINANCE: Leverage Balance Sheet for Structured
Financing and use financing solutions to increase
impact of decarbonization program offerings,
especially to lower-income customers
G18/M1, G3/M4, G7/M4,
G8/M4, G8/M5, G8/M6,
G18/M5
EMPLOYEES: Be The Employer of Choice, &
Increase Staffing
G15/M5, G16/M3, G16/M1
The following changes were made:
- New goal added in legislative area to address Inflation reduction Act: Evaluate and capitalize on the Inflation Reduction Act, improving on currently adopted decarbonization strategies and goals. - Two overlapping legislative goals related to engagement with regulators, legislators, and local elected officials engagement were combined in one.

All the measures were reviewed by staff in context of discussions and direction from the Board related to the Strategic Focus Areas and existing priorities. These were updated to reflect current conditions. Internal documents with more detail to guide each department’s work have been developed and these will be updated as needed in monthly and quarterly meetings with staff.

Staff is also working on re-framing the work plan into a customer facing document. This will be developed over the next few weeks and posted to the web and also provided to the Board and Alternate Board members.

ATTACHMENTS

1. SVCE 2022 – 2023 Strategic Workplan with Goals & Measures Item 1e
-
-
-
-
-
SVCE 2022 – 2023 Workplan Preamble and Goals
SVCE Work Plan 2022-23 1
SVCE Mission
Reduce dependence on fossil fuels by providing carbon free, affordable, and reliable electricity and innovative programs for the SVCE community
Measure of Meeting the Mission
SVCE, working with SVCE member agencies, aspires to achieve energy and transportation GHG reductions of 30% from the 2015 baseline by 2021, 40% by 2025, and 50% by 2030 SUMMARY:

SVCE was founded to address climate change, the greatest existential threat of our time. We will play a vital role in this decades-long endeavor, with the
ongoing support of our
community and our Board.

In addition to the most
complex, expensive, and
regulated sector
of providing carbon-free
electricity, we are
reinvesting in our region
and expanding our toolset
for furthering emissions
reductions by launching
decarbonization and grid
innovation programs.

These programs represent
the next stage in SVCE’s
maturity and are the
mechanism by which SVCE will further engage our communities to achieve our mission.

We embody the entrepreneurial and innovative spirit of the community in which we live and work, the spirit of Silicon Valley, to bend the carbon curve downwards and improve the lives of our community members. This means
taking calculated risks and
demonstrating novel
approaches that have the
potential to make big
impacts – our results serve
to inform, inspire, and
influence the rest of the
market to achieve outsized
results.

We prioritize collaborating
with our peers and
stakeholders to broaden
Item 1e
Attachment 1
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HISTORICAL FORECAST
I
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I ' 1• CA' Llf:~A NIA 2030 TARGET
I ♦ ' SVCE launched
service In 2017; I •'· baselin e d ata
st arts In 2015 ' ' '
- ELECTRICITY (SVCE, PG&E, DIRECT ACCESS)

TRANSPORTATION
- NATURAL GAS
♦ SVCE GHG GOAL
~
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ACHIEVED
2025 GOAL: 40% BELOW 2015 L•Vt:LS
2030 GOAL: 50"' BELOW 2015 LEVELS

CALIFORN IA
20,sT.t.RGl!T
Strategies for Market Transformation
Market Rules
& Regulations
• Procure sustainable, affordable
& carbon-free supply
Electrify the built environment
& mobility
Promote efficiency & utility grid
integration
Remove market barriers
(regulations & law)
rt., SILICON VALLEY ~ CLEAN ENERGY
SVCE 2022 – 2023 Workplan Preamble and Goals
SVCE Work Plan 2022-23 2
our impact, for instance by forming regional efforts; widely disseminating results (including unanticipated ones) so that others can learn from our experience; and build on the promising approaches pioneered by others.

Here are our Workplan Goals, followed by narrative leading to these goals and how we will measure achieving these goals:

1. Plan for resources to meet SVCE’s mission while balancing multiple stakeholder objectives

2. Acquire clean and reliable electricity in a cost effective, equitable and sustainable manner

3. Manage and optimize power supply resources to meet affordability, GHG reduction and reliability objectives

4. Advocate for policies that protect CCA customer investments and furthers decarbonization, grid reliability, affordability, and social equity with federal and state elected officials and regulators

5. Develop and enhance internal processes related to Supplier Diversity, Staffing and Compliance

6. Empower customers with the awareness, knowledge and resources needed to make effective clean energy choices

7. Support communication and engagement with public, private, and non-profit stakeholders to leverage our decarbonization efforts

8. Enact and maintain competitive service offerings for SVCE customers that deliver measurable economic and environmental benefits

9. Work with the community to plan for and track achieving energy and transportation GHG reductions of 30% from the 2015 baseline by 2021, 40% by 2025, and 50% by 2030

10. Coordinate development of decarbonization and resilience strategy, lead design of local policy, and design and deploy programs

11. Enable data-driven decision-making across the organization

12. Support legislation which advances SVCE's mission to reduce dependence on fossil fuels by supporting the development of a low carbon, affordable, and reliable electric system while simultaneously advancing economy-wide decarbonization

13. Engage elected officials to inform them of SVCE's work and to partner on advancing policies

14. Evaluate and capitalize on the Inflation Reduction Act, improving on currently adopted decarbonization strategies and goals

15. Build and maintain a high-performing team to be an employer of choice

16. Maintain an enjoyable and rewarding workplace to be an employer of choice

17. Get great at prioritizing, and rebalancing to align SVCE work with SVCE strategic focus areas

18. Commit to maintaining a strong financial position

19. Avoid failures in management of market risk, credit risk, liquidity risk, operational risks, and enterprise risks

20. Ensure SVCE’s Information Technology infrastructure is secure, reliable, and disaster resilient to provide 24/7/365 online access

21. Enable data-driven decision-making across the organization; automate, integrate, and streamline business processes to minimize operational risk and move organization toward industry best practices from its startup phase
2022-23 BOARD STRATEGIC FOCUS AREAS:

During the period from May-September 2022, the Board identified and approved 5 Focus Areas for the next year. This table shows the strategic plan goals where we address these focus areas.

Item 1e
Attachment 1
SVCE 2022 – 2023 Workplan Preamble and Goals
SVCE Work Plan 2022-23 3
2022-23 Strategic Focus Areas Related Strategic Workplan Plan Goals/Measures (G/M)
24x7 CLEAN ENERGY: Explore 24x7 clean energy
delivery at scale, to improve on the current 100%
clean energy goal
G1/M1, G8/M1, G2/M2, G1/M2,
G10/M6
CUSTOMER BASE & ELECTRIFICATION: Grow
Customer Base & Offerings, Emphasize
Electrification
G7/M4, G8/M4, G8/M5, G8/M6,
G8/M2, G6/M1, G6/M2,
G10/M7, G7/M2, G8/M7
INFLATION REDUCTION ACT: Accelerate
deployment of currently adopted decarbonization
strategies and goals; evaluate and capitalize on the
Inflation Reduction Act & California state budget
climate funds to further improve programs
G2/M4, G10/M1, G10/M2,
G10/M8, G9/M4, G10/M3,
G7/M5, G14/M1, G10/M5,
G10/M9, G4, G9/M1, G9/M2,
G9/M3, G7/M2, G5/M3, G7/M1
FINANCE: Leverage Balance Sheet for Structured
Financing and use financing solutions to increase
impact of decarbonization program offerings,
especially to lower-income customers
G18/M1, G3/M4, G7/M4,
G8/M4, G8/M5, G8/M6,
G18/M5
EMPLOYEES: Be the Employer of Choice, & Increase
Staffing
G15/M5, G16/M3, G16/M1
FUNCTIONAL NARRATIVES AND MEASURES:

A. 4PRO: POWER POLICY, PLANNING, PROCUREMENT, REGULATORY AND OPERATIONS SVCE’s Power Resource Team is responsible for policy and regulatory advocacy, planning, acquiring, operating and managing power supply resources to meet the community’s clean energy goals and state-mandated power and reliability requirements. This is done through a balanced approach which considers cost, risk, long-term value, and best fit in meeting community goals. This requires sustainable planning, innovative thinking, prudent risk management and the constant search for the best solutions and mix of resources to meet SVCE’s clean energy goals in an affordable and reliable manner, while putting SVCE on a path to carbon-free on a 24x7 basis.  Going forward, to be successful SVCE must adapt to new climate and social challenges; customer specific needs; support region-wide decarbonization and electrification goals; integrate distributed energy resources; collaborate and leverage opportunities for joint procurement; and become technology and data driven.

The regulatory processes wield critical influence over SVCE’s ability to serve our customers and fulfill our core goals and mission. SVCE proactively promotes a stable, long-term regulatory infrastructure that supports our vision to decarbonize and electrify the grid. SVCE will work to align regulatory directives with SVCE’s mission, incentivize resources that decarbonize the grid, and serve our customers’ needs within the evolving energy market.

Item 1e
Attachment 1
-
-
-
-
-
SVCE 2022 – 2023 Workplan Preamble and Goals
SVCE Work Plan 2022-23 4
SVCE will actively engage with the regulatory stakeholders to enhance our ability to mitigate greenhouse gas emissions, protect the large investments made by SVCE on behalf of our customers, minimize rate volatility, encourage regulatory certainty, and help build a policy framework that supports innovation in an equitable and cost-effective manner.

Goals Measures
G1: Plan for resources to meet
SVCE’s mission while balancing
multiple stakeholder objectives
M1: Integrated Resource Planning - develop pathway to affordable, reliable, and carbon-free power supply by 2035 and beyond (2045) M2: Develop a platform to integrate wholesale market driven VPP into supply planning and operations
M3: Deploy new forecasting function to integrate software and resources to expand insights, planning and reporting
G2: Acquire clean and reliable
electricity in a cost effective,
equitable and sustainable
manner
M1: Achieve SVCE 100% Clean goals; meet RPS mandates; meet RA obligations; meet IRP procurement mandates; Meet MTR, FCR, and LDS mandates
M2: Meet SVCE’s standard retail rate product offerings (i.e., GreenPrime, GreenPrime Direct and GreenStart) and assist in the development of sustainable, strategic and risk managed GreenPrime Direct and other Commercial Industrial custom product offerings.

M3: Deploy joint procurement of cost effective renewable, with special consideration for resource adequacy reform, and standalone and paired storage resources.

M4: Evaluate the impacts and opportunities under the IRA including clean energy asset ownership to structurally lower costs and lower risk G3: Manage and optimize
power supply resources to
meet affordability, GHG
reduction and reliability
objectives
M1: Manage Power Supply Portfolio and Energy Risk, and Optimize Market Participation
M2: Implement and Operate Power Purchase Agreements to enhance value to SVCE
M3: Ensure SVCE adopts the appropriate tools, systems, and resources to support new resource valuations, portfolio optimization, risk management, load forecasting, compliance, and settlements M4: Effectively manage portfolio through timely and accurate validation and reconciliation of portfolio performance and costs
G4: Advocate for policies that
protect CCA customer
investments and further
decarbonization, grid reliability,
affordability, and social equity
with federal and state elected
officials and regulators.

M1: Actively advocate in resource planning proceedings (RA, IRP) at the CPUC and CEC to ensure any regulations are aligned with SVCE procurement.

M2: Advocate at the CAISO to ensure procurement requirements are aligned with SVCE priorities and coordinated with CPUC regulations.

M3: Advocate for policies that help reduce PCIA volatility and uphold customer indifference and don’t penalize CCA customers for taking service from a CCA over another LSE.

M4: Advocate for increased data access and an open access platform in the CPUC Distributed Energy Resources (DER) proceeding.

G5: Develop and enhance
internal processes related to
M1: Adopt agency-wide Diversity Equity and Inclusion (DEI) Framework Item 1e
Attachment 1
SVCE 2022 – 2023 Workplan Preamble and Goals
SVCE Work Plan 2022-23 5
Supplier Diversity, Staffing and
Compliance
M2: Develop an enterprise-wide compliance structure for SVCE M3: Develop PPA & Organization-wide procurement guidelines and/or policies to promote fair labor/workforce, environmental practices, and community benefits
B. ESCR: ENERGY SERVICES AND COMMUNITY RELATIONS
Core to SVCE’s mission is delivery of high-value clean energy services and programs for our customers, who range from individual residents and small businesses to some of the world’s largest and most innovative tech companies. By providing reliable and responsive carbon-free electricity service at competitive rates, SVCE maintains a high customer participation rate and a strong financial foundation.

Access to carbon-free electricity has helped our communities take a major step in fighting climate change, reducing local emissions by more than 35%. Yet supplying clean electricity is just the start.

To be the ‘provider of choice’ and meet longer-term community decarbonization goals, SVCE must continue to provide competitive energy services, and innovative programs for electrification at scale in transportation and the built environment. These must be well-tailored to the needs of our customers, including those traditionally underserved or difficult to reach, and large commercial customers with access to many other providers.

It is essential that SVCE engage our 270,000+ residential and commercial electricity customers in the electrification journey and take the necessary next steps. To do so, SVCE must continue to inspire and educate customers, and enable relevant action. This means expanding awareness and becoming a trusted advisor for electrification and leveraging direct digital engagement with customers via the web, email, and hosted online services. Supporting information and tools must be engaging, factual and easy to understand for customers, and useful for stakeholders including community leaders, local elected officials, labor, and private sector partners.

Given the scale of the challenge, effective public communication is critical. This includes regular communications to key stakeholder groups, and more broadly, telling the essential ‘stories’ behind electrification and decarbonization. To win hearts and minds, SVCE must work to illustrate the full range of social, environmental, and economic benefits and consequences at stake. In addition, SVCE must cultivate customer and stakeholder relationships in a leveraged way - using an array of channels that bring value to all segments of the communities we serve.

Goals Measures
G06: Empower customers with
the awareness, knowledge and
resources needed to make
effective clean energy choices
M1: Deploy building and transportation electrification awareness advertising campaigns locally
M2: Enable customer education, engagement and action related to electrification and decarbonization, via online tools, resources, and promotions
M3: Provide awareness-building and education via local events, sponsorships, demonstrations and support of educational grants Item 1e
Attachment 1
SVCE 2022 – 2023 Workplan Preamble and Goals
SVCE Work Plan 2022-23 6
M4: Program marketing and communications
G07: Support communication
and engagement with public,
private, and non-profit
stakeholders to leverage our
decarbonization efforts
M1: Develop and expand relationships, education and engagement with labor and the local contractor community
M2: Maintain and expand community communications and engagement via member agency channels, electrification engagement grants M3: Deliver strategic communications that support expanded engagement with legislative and industry audiences
M4. Maintain and expand relationships, education, and engagement with local business customer community
M5. Expand outreach and engagement with underserved/hard-to-reach communities
G08: Enact and maintain
competitive service offerings
for SVCE customers that deliver
measurable economic and
environmental benefits
M1: Maintain SVCE customer value proposition providing carbon-free energy at competitive rates for all segments and rate classes.

M2: Establish new rate program(s) to promote electrification, and matching of clean energy supply and demand
M3: Provide policy support for key customer-facing L&R activities M4: Provide responsive customer service, grow customer awareness and satisfaction, and maintain/expand customer participation rate M5: Operationalize customized power offerings for large C&I customers M6: Establish additional customized power offerings and/or strategic development agreements with large C&I customers
M7: Develop and implement program(s) for commercial building electrification and expanded deployment of all-electric building technologies, EV charging infrastructure
C. DPP: DECARBONIZATION PROGRAMS & POLICY
SVCE’s Decarbonization Programs & Policy team is responsible for leading the design, development, implementation and evaluation of community programs and local policies to drive carbon out of Santa Clara County in an equitable and scalable manner. We take calculated risks to demonstrate novel technologies, programs and approaches that address critical barriers preventing large-scale decarbonization. This emphasis on scaling and removing friction enables us to achieve outsized results through our programs. We take an integrated and collaborative approach that ties together power supply, transportation, the built environment, energy efficiency and grid integration. Our efforts emphasize building the technical, practical, economic, and public-awareness foundation to enable and support local policy adoption. We leverage partnerships, foster innovation, and use data science to deploy initiatives that provide value to our customers and community, and are scalable and transferable beyond our borders.

Goals Measures
G9. Work with the community
to plan for and track achieving
energy and transportation
M1. Carry out annual GHG emissions inventory by source and sector to track and report progress toward meeting climate goals, and support Member Agencies with their inventories.

Item 1e
Attachment 1
SVCE 2022 – 2023 Workplan Preamble and Goals
SVCE Work Plan 2022-23 7
GHG reductions of 30% from
the 2015 baseline by 2021,
40% by 2025, and 50% by
2030 .

M2. Maintain (or license) GHG forecasting model to carry out scenario analyses as well as assess potential impact of proposed policies and programs.

M3. Update sector-specific analyses on an as-needed basis (e.g., Buildings Baseline Study, DER/electrification potential) to inform the development and updates to strategies for achieving
decarbonization and resilience targets.

M4. Develop and track relevant additional sector specific KPIs (e.g., number of gas accounts, square footage of all-electric buildings, DER deployment, etc. by municipality, sector, SEVI quartile, etc.).

M5: Share data and communicate progress toward our mission via public-facing websites, dashboards, or other reports.

G10. Coordinate development
of decarbonization and
resilience strategy, lead
design of local policy, and
design and deploy programs.

M1. Lead collaborative development, periodic updates, management & reporting of decarbonization and resilience strategies and plans o Decarbonization Strategy & Programs Roadmap
o Electric Vehicle Infrastructure Joint Action Plan
o Building Decarbonization Joint Action Plan
o Community Energy Resilience Roadmap
o Double Down Plan for Increased Programs Funding
o Track and React to Inflation Recovery Act
M2. Lead programs on decarbonization focus areas (including topics of mobility, built environment, energy efficiency, innovation, and resilience). Periodically lead prioritization reviews of program portfolio.

M3. Operationalize the Programs Equity Framework by incorporating equity considerations into program design, implementation, outreach, and evaluation through guidelines and resources for staff to apply to current and future SVCE programs.

M4. Lead evaluation, measurement & verification activities, and impact reporting for programs, and disseminate results widely.

M5. Support member agencies in their community's decarbonization efforts by providing funding on key initiatives and helping build capacity at the agency.

M6. Lead collaboration with 4PRO and ESCR to analyze, develop and deploy effective policies, tools, and frameworks to successfully incorporate behind-the-meter activities into a fully integrated approach to power resource planning and management (e.g., virtual power plant).

M7. Explore the potential of Financing Programs to support electrification program efforts at scale.

M8. Increase organizational capacity to rapidly design, deploy, and manage programs at a significantly larger scale (e.g., budget, number of units deployed).

M9. Lead local policy development and support adoption as a key lever for large-scale decarbonization impacts across SVCE territory and the state.

Item 1e
Attachment 1
SVCE 2022 – 2023 Workplan Preamble and Goals
SVCE Work Plan 2022-23 8
M10. Build coalitions, networks, and relationships to inform policy and program development, reduce soft costs, and enable adoption and implementation.

G11: Enable data-driven
decision-making across the
organization
M1. Update and maintain DAISY as a centralized data hub to enable streamlined analyses, reporting, and key applications.

M2. Develop and maintain a suite of core reports (e.g., using DataStudio) to visually track and communicate key metrics for use by SVCE staff
M3. Develop, coordinate, and implement an enterprise-wide training plan for all employees to improve skills that will allow for more self-service from DAISY and core reports.

M4. Seek out and integrate additional data sources to enhance data-driven insights.

M5. Provide data and analytics support to teams across SVCE.

D. LEGISLATIVE
Legislation wields critical influence over SVCE’s ability to serve our customers and advance our mission.

SVCE will work to align legislation with SVCE’s mission, incentivize resources that decarbonize the grid, and serve our customers’ needs within the evolving energy market.

SVCE will actively engage with legislative stakeholders to enhance our ability to mitigate greenhouse gas emissions, protect the large investments made by SVCE on behalf of our customers, minimize rate volatility, encourage regulatory certainty, and help build a policy framework that supports innovation in an equitable and cost-effective manner. SVCE will promote policies that encourage customers to adopt clean energy choices, transportation electrification, and transition to future fit buildings. SVCE will leverage relationships and build coalitions with organizations with common goals to amplify our message and influence policy. SVCE will use its unique ties to communities and the power of its elected officials to support decarbonization at the state and local level.

Goals Measures
G12: Support legislation
which advances SVCE's
mission to reduce
dependence on fossil fuels by
supporting the development
of a low carbon, affordable,
and reliable electric system
while simultaneously
advancing economy-wide
decarbonization.

M1: Advocate through the state and federal legislative process for policies that align with the Board-adopted policy platform.

M2: Analyze and advocate for state and federal funding sources to advance our decarbonization, clean energy, and equity goals.

G13: Engage elected officials
to inform them of SVCE's
work and to partner on
advancing policies.

M1: Regularly communicate with local, state, and federal delegation members on SVCE priorities and accomplishments.

M2: Work with Decarb. Policy and Government Initiatives Team to educate and engage elected officials and stakeholders in existing building decarbonization policy.

Item 1e
Attachment 1
SVCE 2022 – 2023 Workplan Preamble and Goals
SVCE Work Plan 2022-23 9
G14: Evaluate and capitalize
on the Inflation Reduction
Act, improving on currently
adopted decarbonization
strategies and goals.

M1: Analyze programs in the Inflation Reduction Act. Coordinate with internal team to understand implications of the IRA, improve our strategies and goals, and advocate for program structures in implementation phase that benefit SVCE's community.

E. WORKPLACE & HOW WE GET WORK DONE
Achieving SVCE’s ambitious and urgent mission requires a team capable of meeting the tremendous challenges embedded in these goals. SVCE develops and fosters a diverse and talented team that thrives in a dynamic and fast-changing environment. As such, we recruit and retain smart, passionate, innovative, and collaborative employees. We contribute, as a team and as individuals, to continuously build and support a culture of collaboration and trust. We encourage creativity and the free flow of ideas to spur innovation. The workplace environment is adaptable, and technology enabled to drive innovative solutions. We emphasize focus and prioritization across departments to achieve quality, rather than simply quantity of output. We provide a rewarding workplace experience where productivity can be maintained across a variety of work environments. We provide opportunities for growth and engagement, and we support professional and personal development. We offer opportunities that position our people, and in turn SVCE, for success.

Goals Measures
G15: Build and maintain a
high-performing team to be
an employer of choice
M1: Implement Management Training Plan; request regular feedback from Directors and staff; use to continually improve training.

M2: Request feedback after every new hire (recruiting / onboarding) and use to continually improve processes.

M3: Maintain 90% staffing of existing positions over the course of the year. Fill 90% of new positions within 90 days of posting.

M4: Regularly assess functional staffing needs (short-term and long-term) around annual budget and use to develop long-term succession plans.

M5: Provide Competitive Compensation and Benefits for staff, as determined through regular reviews / comparisons with peer organizations.

G16: Maintain an enjoyable
and rewarding workplace to
be an employer of choice
M1: Regularly assess hybrid workplace policies and use feedback to continually improve tools and processes to achieve organization-wide competency in hybrid work.

M2: Regularly review organizational policies and procedures and update as needed.

M3: Foster and develop a workplace culture that supports and empowers staff
G17: Get great at prioritizing,
and rebalancing to align SVCE
M1: Develop annual workplan and continue the director level tracking and review process and enhance as necessary
Item 1e
Attachment 1
SVCE 2022 – 2023 Workplan Preamble and Goals
SVCE Work Plan 2022-23 10
work with SVCE strategic
focus areas
M2: Implement and drive Monday.com at SVCE for project planning and management
F. FINANCE AND FISCAL RESPONSIBILITY
SVCE is committed to serving its mission from a sound financial position. Doing so requires the consistent implementation of disciplined fiscal strategies and active enterprise risk management. SVCE manages its financial resources responsibly by setting a high standard of transparency, accountability, efficiency, and strong stewardship.  At SVCE, our commitment to fiscal and operational excellence will ensure that processes are efficiently designed to achieve maximum productivity by aligning people, systems, and policies. Adherence to sound fiscal policies and active risk management will help the agency respond to unexpected risk events, maintain a high credit rating, and deliver high-value products and services to our customers.

Goals Measures
G18: Commit to maintaining a
strong financial position
M1: Present balanced budget that achieves cash reserve targets, weighs tradeoffs between customer value proposition and contribution to reserves, and maintains competitive rates M2: Board presentation on 5-year financial forecast once a year M3: Unqualified audit opinion, qualified audit opinion
M4: Maintain investment grade credit rating from one of the 3 credit rating agencies
M5: Capture savings in energy procurement and enhance customer product offerings thru structured financing.

G19: Avoid failures in
management of market risk,
credit risk, liquidity risk,
operational risks, and
enterprise risks
M1: Develop appropriate metrics, tools, and training to empower staff to effectively identify, avoid, and mitigate risks to SVCE Item 1e
Attachment 1
SVCE 2022 – 2023 Workplan Preamble and Goals
SVCE Work Plan 2022-23 11
G. DATA ANALYTICS, GOVERNANCE & INFORMATION TECHNOLOGY
SVCE is committed to addressing the challenges of delivering IT services in a dynamic environment with new regulations and continuous advancements in science and technology. We take customer information, privacy, and security seriously. Our systems and processes follow best practices and industry standards. Performance metrics are in place to ensure resiliency and high system availability on standard and mobile platforms, supporting staff wherever they work from. Regular upgrades to IT resources ensure continued data security, efficient data access, and support the transition to more digital outreach and community engagement model. As the volume of data generated by the organization’s activities expands, IT is focused on enabling greater analysis and utilization of the data available, while ensuring its security and confidentiality.

We understand that data is key to achieving our mission and prioritize maintaining high data and IT infrastructure security. We develop and apply proper data governance that includes establishing standards, policies, and processes to ensure effective data management throughout the enterprise.

Through data science, we advance key data-intensive business cases to design and develop innovative customer programs and serve our mission efficiently and effectively.

Goals Measures
G20: Ensure SVCE’s
Information Technology
infrastructure is secure,
reliable, and disaster resilient
to provide 24/7/365 online
access
M1: Conduct annual IT Audit/Security Assessment to evaluate information security at both the policy and technology (software and hardware) levels and implement all critical recommendations.

M2: Develop IT continuity plan and align with overall business continuity plan; update annually to reflect changing business needs M3: Achieve cybersecurity scorecard targets; Ensure IT infrastructure (network, systems and cloud-based tools) elements are secure, updated and that SVCE is using top rated providers.

M4: Avoid cybersecurity threats including all instances of unauthorized system access and/or data loss through spoofing, phishing, and hacking G21: Enable data-driven
decision-making across the
organization; automate,
integrate, and streamline
business processes to minimize
operational risk and move
organization toward industry
best practices from its startup
phase
M1: Identify and evaluate hardware and software improvements to enhance collaboration
M2: Develop a comprehensive assessment of SVCE business processes, both technical and functional, to achieve efficiency and optimization and minimize operational risks.

M3: Empower organization-wide decision making with data, systems, processes, and infrastructure
Item 1e
Attachment 1

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Staff Report – Item 1f
Item 1f: Authorize the Chief Executive Officer to Negotiate and Enter into a New Engagement with Meyers | Nave for Legal Services
From: Girish Balachandran, CEO
Prepared by: Monica Padilla, COO / Director of Power Resources Zak Liske, Senior Manager of Power Operations
Date: 10/12/2022

RECOMMENDATION
Staff recommends that the Silicon Valley Clean Energy Authority Board (“Board”) authorize the Chief Executive Officer (“CEO”) to negotiate and enter into a new engagement with Meyers|Nave for legal services for a total amount not to exceed (“NTE”) $500,000.

BACKGROUND
SVCE approved an engagement letter with Meyers|Nave in May 2022 to provide legal representation and support with respect to litigation around power purchase agreements. At the time, staff was unsure of the total effort and expense needed to engage in litigation and set an NTE amount for the agreement of $100,000 for the fiscal year term.

ANALYSIS & DISCUSSION
Staff is requesting a new engagement letter with Meyers|Nave for continued legal support around potential litigation related to SVCE’s power purchase agreements. If the Board approves staff’s request, the CEO will negotiate and execute a new agreement which will include the scope of engagement, fees and personnel and general agreement terms and conditions. A not to exceed amount of $500,000 per fiscal year will also be included in the agreement. This amount is based on analysis of current expense rate under the existing agreement for litigation support around power purchase agreements. Litigation costs are by nature uncertain and staff may return to the Board within the fiscal year if changes to the budget are needed.

STRATEGIC PLAN
Authorizing the CEO to negotiate and enter into an engagement will directly support Goal 5 of the Strategic Plan which is to “Acquire clean and reliable electricity in a cost effective, equitable and sustainable manner”.

ALTERNATIVE
If the Board does not delegate authority to the CEO, SVCE will face transactional risk, due to potential lack of legal support given the high demand for legal support and limited capacity.

FISCAL IMPACT
The recommendation results in an estimated fiscal impact of $500,000. The total fiscal impact including the prior engagement with Meyers|Nave is $600,000 and is expected to be across multiple fiscal years. The Item 1f
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~CLEAN ENERGY
Agenda Item: 1f Agenda Date: 10/12/2022

Page 2 of 2 ends

Board-approved FY 2022-23 Operating Budget includes sufficient funds to cover legal expenses including a new engagement with Meyers|Nave.

Item 1f

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Staff Report – Item 1g
Item 1g: Review and Approve Updates to SVCE Customer Confidentiality Policy From: Girish Balachandran, CEO
Prepared by: Adam Selvin, Director of Energy Services and Community Relations Date: 10/12/2022

RECOMMENDATION
Staff requests that the SVCE Board approve revisions to the Customer Confidentiality Policy ‘Notice for Accessing, Collecting, Storing, Using and Disclosing Energy Usage Information’ contained in Attachment 1.

BACKGROUND
The current Customer Confidentiality Policy was reviewed and approved in January of 2017 based on California Public Utility Commission (CPUC) regulations requiring that SVCE develop and post a notice to customers regarding access, collection, storage, use and disclosure of energy usage information. Silicon Valley Clean Energy’s current policy on Customer Confidentiality can be found at www.SVCleanEnergy.org/customer-confidentiality.

ANALYSIS & DISCUSSION
Revisions are required to incorporate the addition of customer gas usage data and the ability for SVCE customers to elect to share their electricity and gas usage and billing data with third party services via SVCE services such as Data Hive.

STRATEGIC PLAN
As referenced in SVCE’s Strategic Plan, Item 10, creating this Staff Report is in line with efforts to Empower customers with the awareness, knowledge, and resources needed to make effective clean energy choices.

ALTERNATIVE
Maintaining Customer Confidentiality policies and communications is required per CPUC Decision 12-08-045, “Extending privacy protections to customers of gas corporations and community choice aggregators, and to residential and small commercial customers of electric service providers.”

FISCAL IMPACT
SVCE will not incur significant financial impacts to revise the current policy.

ATTACHMENT

1. SVCE Customer Confidentiality Policy: Notice for Accessing, Collecting, Storing, Using and Disclosing Energy Usage Information
Item 1g
/'A'\ SILICON VALLEY ~ CLEAN ENERGY
Note: Revisions to current posted policy are shown in highlighted text for clarity.

Customer Confidentiality
Policy
Notice of Accessing, Collecting, Storing, Using, and Disclosing Energy Usage Information
Silicon Valley Clean Energy (SVCE), its employees, agents, contractors, and affiliates shall maintain the confidentiality of individual customers’ names, service addresses, billing addresses, telephone numbers, email addresses, account numbers, and electricity and gas consumption, except where reasonably necessary to conduct SVCE’s business or to provide services to customers pursuant to the “Rules Regarding Privacy and Security Protections for Energy Usage Data” issued by the California Public Utilities Commission (CPUC). Examples of reasonably necessary business purposes include but are not limited to when such disclosure is necessary to (a) comply with law, regulation, or court order; (b) enable SVCE to provide service to its customers; (c) collect unpaid bills; (d) obtain and provide credit reporting information; (e) resolve customer disputes or inquiries; (f) communicate about demand response, energy efficiency, energy management, and conservation programs, or (g) in situation of imminent threat to life or property. SVCE shall not, under any circumstance, disclose customer information for third-party telemarketing, e-mail, or direct mail solicitation.

Aggregated data that cannot be traced to specific customers may be released at SVCE’s discretion.

Customer data, including individual customer names, addresses, and electric energy usage data, is collected via PG&E’s metering systems. SVCE may share customer data with contractors and vendors for purposes of providing services and operating programs. Contractors and vendors are required to agree to only use customer data for program operational purposes and protect it under the same standards as SVCE. SVCE maintains customer-specific electricity and gas usage and billing information for only as long as is reasonably necessary, typically not more than five years unless otherwise required by law or regulation. Separately, SVCE customers may elect to authorize the secure sharing of their electricity and gas usage and billing data with third parties via SVCE services such as Data Hive.

The effective date of this policy is [October 12, 2022]. Notice of this policy will be provided annually to customers via an on-bill message guiding customers to the most Item 1g
Attachment 1
-
updated version on Silicon Valley Clean Energy’s website at www.SVCleanEnergy.org.

Any changes to this policy between notification periods will be communicated through Silicon Valley Clean Energy’s website. Previous versions of this policy can be requested via email at [email protected] or by mailed request to Silicon Valley Clean Energy, Attention: Customer Care Team, 333 W. El Camino Real, Suite 330, Sunnyvale, CA 94087.

Customers having any questions or concerns regarding the collection, storage, use, or distribution of customer information, or who wish to view, inquire about, or dispute any customer information held by SVCE or limit the collection, use, or disclosure of such information, may contact the Customer Care Team via email at [email protected], by phone at (844) 474-7823 or by mail at 333 W. El Camino Real, Suite 330, Sunnyvale, CA 94087.

Item 1g
Attachment 1

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Staff Report – Item 1h
Item 1h: Approve Audit Committee Membership of Three Members From: Girish Balachandran, CEO
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 10/12/2022

RECOMMENDATION
Staff recommends the Board of Directors approve reducing the current membership of the Audit Committee to three members, due to an unexpected vacancy, until new committee appointments are made in February 2023.

BACKGROUND
The Audit Committee was formed by the Board to work with SVCE staff on the initiation and receiving of the annual audit. The Audit Committee meets as needed, and the 2022 committee was appointed at the February 9, 2022 Board of Directors meeting to include the following members: Director Margaret Abe-Koga, Alternate Director Sergio Lopez, Alternate Director Bryan Mekechuk, and Vickie Rahman, Finance Manager for the City of Gilroy (four members total).

ANALYSIS & DISCUSSION
Staff received a letter of resignation from Committee member Vickie Rahman on September 28, 2022 with an effective date of October 1, 2022, which leaves a vacancy on the Audit Committee. Rather than fill this vacant seat with few remaining meetings left in the year, staff is proposing the Board of Directors approve to reduce the membership of the committee to three members until annual appointments of committees are made in February 2023.

ALTERNATIVE
Staff is open to alternatives from the Board of Directors, including filling the vacant seat to keep a four-member committee if desired.

FISCAL IMPACT
No fiscal impact as a result of reducing the membership of the committee to three members.

Item 1h
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Staff Report – Item 1i
Item 1i: Receive Q3 2022 Decarbonization Strategy and Programs Roadmap Update From: Girish Balachandran, CEO
Prepared by: Justin Zagunis, Director of Decarbonization Programs and Policy Nupur Hiremath, Manager of Community Programs
Date: 10/12/2022

RECOMMENDATION
Staff recommends the Silicon Valley Board of Directors accept the Q3 2022 Update of the Decarbonization Strategy & Programs Roadmap.

BACKGROUND
To achieve its mission to reduce dependence on fossil fuels by providing carbon-free, affordable and reliable electricity and innovative programs for the community, SVCE established a decarbonization strategy and programs roadmap (abbv. “Roadmap”). In December 2018, the Board approved the Roadmap, and since that time, staff have been working on implementation.

ANALYSIS & DISCUSSION
Attachment 1 is the most recent quarterly update, covering July through September 2022. The quarterly update includes a table with a summary of updates and next steps for each initiative.

STRATEGIC PLAN
This item supports SVCE’s 2021-2022 Strategic Plan Goal 8, to “coordinate development of decarbonization strategy, lead design of local policy and programs, and support program deployment,” to support achieving energy and transportation GHG reductions of 30% from the 2015 baseline by 2021, 40% by 2025, and 50% by 2030.

FISCAL IMPACT
Accepting the Q3 2022 Update of the Decarbonization Strategy & Programs Roadmap has no fiscal impact.

ATTACHMENTS

1. Decarbonization Strategy & Programs Roadmap – Q3 2022 Update Item 1i
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Decarbonization Strategy & Programs Roadmap
Q3 2022 Update
October 12, 2022 BOD Meeting
Sector Program Q3 2022 Activities Q4 2022 Outlook Power Supply C&I Clean Power Offerings
Develop, market and sell
additional SVCE power
offerings to address large C&I
customers seeking to buy clean
power at competitive rates
• Proceeding with work to operationalize 24/7 carbon-free supply agreement with large commercial customer. Includes coordinated work between staff,
customer, PG&E and Calpine.
• Introduced EcoInvest discount agreement to a second
large commercial customer, prepared financial analysis. • General marketing activities and outreach for customer agreements to various qualifying C&I.
• Make final preparations to launch 24/7
agreement with large commercial
customers.
• Execute the second EcoInvest discount
agreement.

Built Environment
Reach Codes
Provide model energy code
supportive of all-electric design
and EV infrastructure to
member agencies along with
consultant support
• Provided outreach support, technical support, and
customized resources for all 13 member agencies to
support Reach Code adoption.
• Hosted virtual forum for elected officials from San
Mateo and Santa Clara Counties. Over 65 registrants
and nearly 50 attendees.
• SVCE will support agency staff and
elected officials through the Reach Code
adoption process.
• Votes take place October through
December.

All-Electric Showcase
Grants.v2
Showcase electric retrofit
buildings in preparation for
existing building policy
conversations with member
agencies.
• Reviewed program elements, including customer
eligibility, incentives and marketing.
• Reviewed plans for key-customer tour.
• Determined approach for tracking, monitoring, case
study development.
• Began program implementation.
• Application period to be announced.

Item 1i
Attachment 1
1 FutureFit Heat Pump Water
Heaters
Provide incentives for electric
heat pump water heaters and
service panel upgrades to
residents using natural gas
currently
• 482 Program reservations.
• Completed 247 water heater installations.
• Completed 59 service panel upgrades.
• 13 CARE/FERA participants.
• Sunset HPWH program and launch a
functional replacement in FutureFit
Homes and Buildings. Stop collecting new
reservations under legacy program.
• Continue servicing registered customers
under HPWH until final reservation is
installed.

Permit Modernization Effort
Benchmark and streamline
member agency’s permitting
and inspection processes to
identify barriers and
opportunities to electrification
• Continued to educate Building Officials on legislative trends and pending requirements.
• Established contract with lead consultant to refresh
baseline and develop report on assistance desired by
jurisdictions.
• Approved interview guide.
• Initiated interviews with agencies.
• Finalize jurisdiction interviews.
• Identify prioritized menu of assistance
programs desired by jurisdictions.
• Continue to inform Building Officials
about legislative and regulatory
requirements.
• Support jurisdictions in applying for State
grants.

Building Decarb Joint Action
Plan
Develop a joint action plan with
member agencies to prioritize
strategies and programs to
advance building
decarbonization
• (COMPLETED) • (COMPLETED)
Community Resilience
Program
Increase the individual and
collective capacity of SVCE and
our member agencies to
reduce the adverse impacts of
power outages.
• Launched Resilient Site Selection Tool and held tutorials with several member agencies.
• Held internal Lunch and Learn on Program with lessons learned.
• Continue to execute member agency
capex and planning grants on a rolling
basis.
• Publish Resilience Framework.

FutureFit Fundamentals
Provide financial relief to
contractors by expanding their
knowledge of electrification
technologies
• Reached the first milestone of 50 contractors
completing the course.
• Executed Task Order with SMUD to administer the
program.
• Continue direct outreach to contractors
for program enrollment.
• Assess program and explore “relaunch.”
CRCR Bill Relief
Provide immediate bill relief to
residential CARE/FERA
customers, and to qualifying
small business customers
• (COMPLETED) • (COMPLETED)
Item 1i
Attachment 1
2 FutureFit Homes & Buildings
Provide comprehensive
assistance to SVCE customers
in navigating and accessing the
many existing and forthcoming,
non-SVCE led energy programs
providing financial assistance
for building decarbonization
and energy efficiency.
• Planned new suite of incentives in early October,
expanding rebates to HP HVAC and pre-wiring for
future electrification. Additional emphasis on layering with other BE & EE incentives, such as BayREN.
• Program points to updated contractor resources
focusing on BayREN and SwitchIsOn electrification
contractors.
• Further scoping of concierge service for
Phase 2 of FFHB.
• Developing and implementing expanded
outreach plan.

Regional Coordination
SVCE will initiate regular
regional stakeholder
convenings to coordinate
program alignment across
building decarbonization
workstreams.
• Actively coordinated with EBCE and PCE on reach code
development and adoption.
• Began developing priorities for regional coordination on existing building policy.
• Expand SVTEC events to include regional
agencies outside of SVCE territory.
• Convene group of regional stakeholders
to plan existing building decarbonization
engagement.

Accessible Financing
Assess feasibility of financing
mechanisms to unlock
equitable financing for energy
efficiency and electrification
across the region, particularly
for low-income communities.
• Continued to support SVCE proposal to the CPUC
Finance proceeding.
• Supported development of program operator RFP.
• Began engaging with PG&E on bi-weekly basis to
discuss CCA-IOU coordination for pilot.
• Prepare reply comments for anticipated
CPUC proposed decision.
• Supporting selection of program
operator
• Continuing to engage with PG&E on pilot
coordination
Local Policy to Decarbonize
Existing Buildings
Assess and support potential
policy levers Member Agencies
can explore to mitigate
emissions from existing
buildings.
• Distributed RFP to support program design. • Launch program design activities.

Feasibility Assessment for
Natural Gas Phase Out By 2045
Carry out a feasibility
assessment to identify
technical, legal and economic
barriers and opportunities for
phasing out natural gas service
by 2045, in the SVCE service
territory.
• On hold. • On hold.

Mobility
EV Infrastructure Strategy &
Plan
Develop a near- to mid-term
strategy for EV infrastructure
and a set of program
implementation plans
• (COMPLETED) • (COMPLETED)
Item 1i
Attachment 1
3 California Electric Vehicle
Infrastructure Project
(CALeVIP)
Work with California Energy
Commission to launch a
regional CALeVIP project
• Continued to review current Year 2 applications.

Significant progress made in moving applications from
funds reserved status to funds issued following
installations. 8 DCFC and 130 L2 connectors installed
and funded to date.
• Began tracking data via new Partner Data Dashboard.
• Complete review of current Year 2
applications.

Priority Zone DCFC
Competitive application to
receive an additional incentive
(on top of CALeVIP) for DCFC in
“priority zones” that support
nearby SVCE-designated
multifamily housing clusters
• Opened the application period for new applications
from DCFC installers.
• Completed initial outreach to DCFC installers about
incentive opportunity.
• Received first application.
• Continue outreach to DCFC installers
prior to application window closure.
• Review and score submitted applications.

MUD & S/M Workplace
Technical Assistance (FutureFit
Assist)
Technical assistance and help
applying for pertinent CALeVIP
rebates for charging at
multifamily housing and small
and medium workplace
properties
• Targeted 1,004 customers for technical assistance and completed 27 site assessments since launch.
• Continued outreach to additional properties to inform them of the new EVI installation incentive program
• Enrolled 4 new properties in program (one small
business and 3 MUDs).
• Conduct ongoing outreach.
• Continue to develop site assessments for
participating properties.
• Continue to connect customers to
relevant rebates and incentive
opportunities.

MUD Charging Incentives
Develop incentive program for
EV charging at hard-to-reach
multifamily properties
• Continued outreach to interested MUD properties to
inform them of new incentive opportunities. Since
launch, 7 MUD properties have enrolled in FutureFit
Assist, 5 more have scheduled site visits, and at least 4 properties are preparing applications.
• First rebate application received and approved for 7 EV charging connectors at an MUD property.
• Continue outreach to MUD properties to
inform them of incentive opportunity
and free technical assistance
• Track progress of applications
• Adjust program terms and eligibility to
MUD properties beyond FutureFit Assist
participants
Fleet Electrification Grants
Competitive application for
SVCE’s fleet electrification
planning support and funding
for site upgrades. Targeting a
broad set of fleet types, to
create widely applicable fleet
electrification planning
templates
• Conducted general research on fleet electrification case studies.
• Identified likely contracting partner and began outlining contract document.
• Began identifying fleet owners in SVCE territory.
• Establish contract with consultant.
• Conduct initial outreach to fleet owners
to identify most interested and priority
customers.
• Identify timeline for assisting interested
fleet owners.
• Continue research and development of
case studies.

Silicon Valley Transportation
Electrification Clearinghouse
(SVTEC)
Regional group of key
stakeholders focused on
• Held quarterly meeting stimulating thought, discussion, and collaboration.
• Event planning and funding.
• Aiming for a November date.

Item 1i
Attachment 1
4 information sharing, solving
critical issues and attracting
external funding to the SVCE
community in support of EV
infrastructure deployment.

Energy Efficiency &
Grid Integration
GridShift: EV Charging
Managed EV charging app that
optimizes charging to reduce
associated costs and emissions.

In-app “events” support
additional emission reductions
and load flexibility
• Released app refresh with new features:
• Smart tab - improved user interface
• Smarter scheduling - set custom ready-by times
for each day of week
• Solar-powered charging - align charging with
rooftop solar generation
• Account deletion - streamlined process to delete
account in-app
• Conducted survey to gather feedback and new
marketing campaign.
• Offered $50 sign-up bonus for the month of August
2022.
• Reached first enrollment target of 500 active EVs.
• Conclude Critical GridShift Hours season.
• Re-launch low carbon events season.
• Continue marketing efforts.

Other Virtual Power Plant
Programs
Support “virtual power plants”
made up of cloud-based
aggregations of customer-sited
resources to support grid
integration and monetize value
from connected, controllable
loads
• Continued Sunrun program support, and tracking
program participation and installs.
• Continued work on identifying priorities and needs for an additional VPP program(s) and/or a local DER
marketplace.
• May issue RFO for aggregated DER
contract to help prepare for summer
2023 reliability issues.
• Continue to support Sunrun program,
moving into dispatch of resources.
• Convene internal team to explore VPP
priorities, objectives, and establish next
steps for action.

Education & Outreach
Customer Resource Center
(eHub)
Develop online customer
resource center to enable
engagement, education and
action related to clean
electricity, EVs and home
electrification.
• 167,102 Unique eHub Engagements since launching
in September 2020 to August 2022
• eHub Metrics July 1 –August 31, 2022:
o 1,951 unique visits to the SVCE eHub
webpages
o 463 unique visits to the EV Assistant tool
o 555 unique visits to the Solar+Battery
Assistant tool
o 13,895 unique visits to the Appliances
Assistant tool
• Running promotion from 7/14/2022 - 10/31/2022.

Customers receive $50 off portable batteries,
evaporation coolers and air purifiers through the
Appliance Assistant. Promotion metrics July 14 –
August 31, 2022
• Continue running the Summer
Appliance Assistant promotion until
10/30/22
• Launch a Drive electric sweepstakes
during the holiday 11/10 - 12/31
• Continue tracking eHub engagement
metrics
• Continue sending monthly emails to
customers to educate them on the
resources available on eHub
o Energy Awareness Month
o Solar + Battery
o Drive Electric Sweepstakes
Item 1i
Attachment 1
5 o 52 air purifiers, 48 evaporative coolers, 105
portable batteries
• Delivered email campaigns:
o Summer Appliance Assistant Promotion
o Value & benefits of electrifying
transportation
Note: Engagements are driven largely by
marketing campaigns delivered within the
quarter. Distribution of metrics will vary.

Community Engagement
Grants
Partner with local organizations
in hard-to-reach customer
segments to promote SVCE
offerings and programs
• Continued discussions around the use of this program
to advance Programs Equity Framework goals.
• Examining next steps for program
implementation.

Portable Batteries for Medical
Baseline Customers
Pilot program to deploy ~50
portable batteries to qualified
customers who rely on power
for medical equipment
• Conducted email outreach to 46 customers.
• Four application sign ups; one physical application sent into SVILC.
• Continue promotion and outreach.

Innovation
Innovation Partners
Engage with key strategic
partners to participate in the
local innovation ecosystem and
provide a voice for SVCE
customers and the decarb
mission
• No activities for Q3. • No activities for Q4.

Innovation Onramp
Provide small grants to support
innovation through pilot
projects with external partners
• Continued support for last active pilot. • Wrapping up last active pilot.

Item 1i
Attachment 1
6

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Staff Report – Item 1j
Item 1j: Executive Committee Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 10/12/2022
No report as the Executive Committee has not met since August 26, 2022.

The next meeting of the Executive Committee is scheduled for October 28, 2022 at 11:30 a.m.; materials will be posted no later than 72 hours in advance of the meeting.

Item 1j
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Staff Report – Item 1k
Item 1k: Finance and Administration Committee Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Rob Rennie, Chair of the Finance and Administration Committee Date: 10/12/2022
The Finance and Administration Committee met on October 5, 2022 and received staff recommendations on updating SVCE’s Investment Policy and initiating a second prepay.

Amrit Singh, CFO and Director of Administrative Services, provided a presentation to the committee on proposed changes to the investment policy, hiring an investment advisor, and cashflow analyses supporting the initial investment strategy. Staff proposed that the Finance and Administration Committee recommend that the Board:
• Adopt the proposed revised investment policy;
• Direct PFM Asset Management, per the agreement executed earlier, to implement the full scope of work as SVCE’s Investment Advisor;
• Adopt a resolution to join as a Shareholder of the California Asset Management Trust; and • Adopt a resolution to join the State’s Local Agency Investment Fund (LAIF).

Monique Spyke of PFM Asset Management (PFMAM) LLC presented to the committee the proposed changes to the investment policy, reviewed PFMAM recommendations for portfolio maturity structure and performance benchmark, and reviewed the proposed initial investment strategy. The committee voted unanimously to support the staff’s recommendation, which is on the regular calendar for the Board’s consideration.

CFO and Director of Administrative Services Singh presented a request to the committee to recommend that the Board authorize the CEO to approve or execute agreements with firms providing services to enable SVCE to execute its second prepay transaction for a total cost of $1,000,000, and approve engagement with Morgan Stanley as the Prepay Supplier. Presentation information included the firms SVCE would be doing business with to initiate the second prepay transaction (PFM Financial Advisors LLC & PFM Swap Advisors, Chapman & Cutler, Ballard Spahr, Moody’s Investor Service Inc.), information on the fee structure with Morgan Stanley which was the same as that of the first prepay, leveraging the first prepay structure and outlining the comparison of the costs of the first prepay and the proposed costs for the second prepay, and reviewing the fiscal impact and next steps. The committee voted unanimously to support staff’s recommendation for the Board’s consideration at the October Board of Directors meeting.

Meeting materials can be found on the SVCE website: SVCE Finance and Administration Committee Meeting, October 5, 2022
The next meeting of the Finance and Administration Committee is to be determined; materials will be posted no later than 72 hours prior to the meeting date.

Item 1k
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Staff Report – Item 1l
Item 1l: Audit Committee Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Bryan Mekechuk, Audit Committee Chair
Date: 10/12/2022
Three of the four members of the Audit Committee met on September 30, 2022 – Chair Bryan Mekechuk, Alternate Director Sergio Lopez, and Committee member Vickie Rahman (Vice Chair Margaret Abe-Koga was absent).

The purpose of this meeting was to kick off the financial statement audit with SVCE’s external auditors, Pisenti & Brinker LLP, and discuss their audit approach and audit plans to opine on SVCE’s financial statements for the year ended September 30, 2022.

Kellin Gilbert, Audit Partner, and Jenna Blanchard, Engagement Supervisor, both of Pisenti & Brinker LLP, provided information to the Audit Committee on the:
• Financial audit timeline
• Roles and responsibilities of management and auditor
• Communication with the Audit Committee
• Planned risk assessment procedures
• New “Single Audit” as required due to expending over $750,000 of federal funds • New accounting pronouncement of GASB 87 – Leases
• Other significant areas of focus for the audit
The audit fieldwork and testing is expected to begin in mid-November and take 3-4 weeks. Draft financial statements will be available in early January 2023 with the issuance of the September 30, 2022 financial statements by January 31, 2023.

Committee member Vickie Rahman submitted a notice of resignation for her role on the Audit Committee; staff will recommend that the Audit Committee membership be reduced to three members until February 2023, when new committee assignments are made.

Materials from the September 30, 2022, meeting can be found on the SVCE website: SVCE Audit Committee Meeting, 9/30/22
The next meeting of the Audit Committee will be scheduled based on member availability but will likely take place in January and/or February 2023; materials will be posted no later than 72 hours in advance of the meeting.

Item 1l
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Staff Report – Item 1m
Item 1m: Legislative and Regulatory Response to Industry Transition 2022 Ad Hoc Committee Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 10/12/2022
No report as the Legislative and Regulatory Response to Industry Transition 2022 Ad Hoc Committee has not met since June 14, 2022.

The next meeting of the Committee will be held near the end of October 2022 and will be scheduled based on member availability.

Item 1m
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Staff Report – Item 1n
Item 1n: California Community Power Report
To: Silicon Valley Clean Energy Board of Directors
From: Girish Balachandran, CEO
Date: 10/12/2022
Per direction from the SVCE Board on December 9, 2020 for the CEO to provide a report of the ongoing activities of California Community Power (CC Power) after each of its meetings, this is to report CC Power held a regular board meeting on Wednesday, September 21, 2022.

Attached is a summary report from Interim General Manager Timothy Haines; materials from the September board meeting can be found here on the CC Power website: CC Power Meeting, 9/21/22 The next meeting of the board will be October 19, 2022 at 1:00 p.m.; meeting materials can be found on the CC Power website: https://cacommunitypower.org/meetings/ ATTACHMENTS:

CA Community Power Board Meeting Summary from Interim General Manager Timothy Haines, September 21, 2022
Item 1n
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California Community Power
70 Garden Court, Suite 300, Monterey, CA 93940 | cacommunitypower.org A Joint Powers Agency whose members are:

Central Coast Community Energy | CleanPowerSF | East Bay Community Energy | MCE | Peninsula Clean Energy | Redwood Coast Energy Authority | San José Clean Energy | Silicon Valley Clean Energy | Sonoma Clean Power | Valley Clean Energy
TO: CC Power Board of Directors and Alternates DATE: 9/21/2022 FROM: Tim Haines – Interim General Manager
SUBJECT: Report on CC Power Regular Board of Directors Meeting – September 21, 2022 The CC Power Board of Directors held its regularly scheduled meeting on Wednesday, September 21, 2022, via Zoom. Details on the Board packet, presentation materials, and public comment letters can be found under the Meetings tab at the CC Power website: https://cacommunitypower.org Highlights of the meeting included the following:
• Matters subsequent to posting the Agenda. None.
• Public Comment. None.
• Consent Calendar - The Board unanimously approved the following items:
o Minutes of the Regular Board Meeting held on August 17, 2022. o Resolution 22-09-01 Determination that Meeting in Person Would Present Imminent Risks to the Health or Safety of Attendees as a Result of the Proclaimed State of Emergency
• Update from Strategic Business Plan ad hoc Committee
o The update to the Strategic Business Plan was provided by Committee lead Sears and Phyllis Currie, consultant hired to complete the plan. Mr. Sears provided an overview of the process and schedule. Of note is the plan will be based on the current statement of purpose of CC Power. The ad hoc committee intended to reflect on this decision in future steps. Ms. Phyllis Currie reviewed the preliminary feedback from interviews she has conducted with some Board members, the key objectives that have been identified to date, near- and longer-term opportunities and challenges, and programs that the plan should not include in the scope. The Board provided feedback on the preliminary finding of the plan and confirmed that the ad hoc Committee should continue as planned. The board took no action.

Item 1n
Attachment 1

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Staff Report – Item 2
Item 2: CEO Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Girish Balachandran, CEO
Date: 10/12/2022
REPORT
SVCE Staff Update
Adam Selvin started with SVCE on September 19th as Director of Energy Services and Community Relations as Don Bray transitions to his new role with SVCE as Director of Strategic Development.

Adam is joining SVCE from CLEAResult, where he has led the C&I Practice as Director, grew new business and improved existing offerings across the Commercial, Industrial, and Agricultural sectors. Before CLEAResult, Adam worked as Principal, Customer Experience at PG&E, where he worked cross-functionally to improve outage notifications, reduce overall call volumes, and communicate rate changes to customers.

Adam is a licensed Professional Engineer and Certified Energy Manager and holds an MBA from UC Berkeley’s Haas School of Business. Following is a link to the press release announcing Adam’s hiring: Adam Selvin Appointed Director of Energy Services and Community Relations at SVCE Personnel Officer Update
SVCE has confirmed an offer to a Senior Regulatory Advisor, who will be joining SVCE at the end of October. In addition, SVCE continues to recruit for open positions including a Human Resources Generalist and a Decarbonization Data Engineer. Additional recruitments are being planned for the coming month, for the new positions approved by the Board in the FY22-23 budget. Also approved in the FY22-23 budget were a number of benefit enhancements, which staff have begun to implement with the start of the fiscal year.

CEO Agreements Executed
The following agreements have been executed by the CEO, consistent with the authority delegated by the Board:
1) 3Degrees, Amendment: Support in Generating Low Carbon Fuel Standard Credits, date extended to 12/31/2023
2) Pick My Solar, Agreement: Solar Marketplace Program, 8/26/22-8/25/23 3) EBCE, Amendment: Data Analytics Consulting Services, extends date to 3/31/23 4) NewGen Strategies & Solutions, Amendment: Advice and expert testimony, extends date to 4/30/23 5) Keyes & Fox, Amendment: Legislative Support and Legal Representation, extends date to 4/30/23 6) ADM, Amendment: Evaluation, Measurement and Verification Services, extends date to 9/30/24 7) MRW, Amendment: IRP Development Services, extends date to 9/30/23 8) Keyes & Fox, Agreement: Legal Services, not to exceed $300,000, 10/1/22 – 9/30/25 9) Braun Blaising & Wynne, Agreement: Regulatory and Legal Services, not to exceed $330,000 ($165,000 per year), 10/1/22 – 9/30/24
10)Pisenti & Brinker, Agreement: Financial Audit Services, not to exceed $32,900, 9/15/22 – 9/30/23 11)Maher Accountancy, Agreement: Accounting Services, not to exceed $273,500, 10/1/22 – 9/30/23 Item 2
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Agenda Item: 2 Agenda Date: 10/12/2022

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12)Claremont Partners, INC, Agreement: Human Resources Services, not to exceed $31,332, 10/1/22 – 9/30/23
13)RWG, Agreement: Legal Services, not to exceed $215,000, 10/1/22 – 9/30/23 14)Amperon Holdings, INC, Agreement: Load Forecasting Software and Consulting, not to exceed $75,000, 9/19/22 – 9/18/23
15)SMUD, Amended and Restated: Program Consulting Services, 6/25/19 – 9/30/24 16)Bryce Consulting, Amendment: Human Resources Consulting Services, extends date to 9/30/23 17)PFM, Amendment: Financial Advisors, LLC, extends date to 9/30/23 18)PEA, Amendment: Technical Consulting Services, extends date to 12/31/22 19)Management Partners, Inc., Amendment: Management Consulting Services, extends date to 3/31/23 20)Beth Sussman Consulting, Amendment: Hogan 360 Degree Feedback Process, not to exceed $45,500, extends date to 12/31/22
21)MMA, Agreement: Health Benefits Consulting Services, not to exceed $30,000, 10/1/22 – 9/30/23 CEO Power Supply Agreements Executed
No agreements to report since our September Board of Directors meeting.

Presentations & Relevant Meetings Attended by CEO
- Participated in CalCCA Monthly board, executive, and legislative meetings; - CC Power Board Meeting, September 21st, report included on the Consent Calendar - Participated in California Community Choice Financing Authority Board of Directors Special Meeting, September 23, 2022

ATTACHMENTS

1. Clean Power Update, October 2022

2. Decarb Programs & Policy Update, October 2022

3. Energy Services & Community Relations Update, October 2022

4. Legislative and Regulatory Update, October 2022

5. Agenda Look Ahead, October 2022 – February 2023
Item 2
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New SV Clean Energy
PowerPoint Template
Item 2
Attachment 1
Clean Power Update, October 2022
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Item 2
Attachment 1
Clean Power Update, October 2022

SACRAMENTO
•
NEVADA
' ' ' ' '

GEOTHERMAL
■ SOLAR POWER ♦ STORAGE
■ SOLAR POWER
■ WIND GENERATION
■ LONG DURATlON STORAGE
LAS
VEGAS
•
' ' '

KINGMAN
•
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,, ARIZONA
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,
,
,
$1.98+ in commitments
16 PPAs signed
13 new build projects
676 MW of Renewable Power
151 MW lithium-ion storage paired with
445 MW of Solar PV
29 MW of Long-duration storage
4 Projects now delivering to SVCE
meeting N20% energy needs:

COSO geothermal - January 2022
Slate Solar+ Storage - January 2022
Casa Diablo geothermal - September 2022
Mountain View wind - July 2022
2 Seller Project Name Technology Generation MW
Storage
MW
Approximate %
of Annual load
in 2025 Term (years)
Lifetime Not
to Exceed
Authority
(MM$)
SVCE
Board
Approval Status
1Goldman Sachs Slate Solar + Storage 93.0 46.5 6.7% 17 $198 Oct-18 on-line 2Ormat Casa Diablo Geothermal 7.0 1.4% 10 $43 Feb-20 on-line 3Atlantica Coso Geothermal 43.8 9.6% 15 $331 Mar-20 on-line 4Leeward Rabbitbrush Solar + Storage 40.0 8 3.0% 15 $64 Apr-20 construction 5NextEra Yellow Pine Solar + Storage 50.0 26 4.1% 20 $128 May-20 construction 68 Minute Energy Aratina Solar + Storage 80.0 20 6.6% 20 $174 Jun-20 Pre-construction 7174 Power Global Atlas Solar 50.0 0 3.8% 10 $27 Jan-21 Pre-construction 8SB Energy Angela Solar + Storage 20.0 10 1.4% 15 $35 Mar-21 Pre-construction 9AES Mountain View Wind 62.5 15.625 3% 20 $128 Apr-21 on-line 10Origis San Luis West Solar + Storage 33.5 4% 15 $74 Apr-21 Pre-construction 11Clearway Victory Pass Solar + Storage 100.0 25 8% 15 $149 May-21 Pre-construction 12Terra-Gen Cameron Crest Wind 77.7 5% 15 $150 May-21 existing 13LS Power Tumbleweed Long Duration Storage 14.6 n/a 15 $100 Feb-22 Pre-construction 14Onward Goal Line Long Duration Storage 14.2 n/a 15 $100 Mar-22 Pre-construction 15Ormat Geothermal Portfolio Geothermal 16.75 3.3% 20 $256 Jun-22 Pre-construction 16OME Fish Lake Geothermal 1.82 0.4% 20 $30 Jun-22 in development Item 2
Attachment 1
Clean Power Update, October 2022
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Item 2
Attachment 1
Clean Power Update, October 2022
© Clean Energy Resources On-line Progress
2022 - Q4
2023 - Q2, Q3
2023 - Q3, Q4
Rabbitbrush Solar+ Storage - delivering test energy. COD mid-October! • Atlas Solar - Pre-Construction - delayed
Cameron Crest Wind - Existing project
• Yellow Pine Solar+ Storage - Construction mode - delayed Angela Solar + Storage - Pre-construction - delayed
Aratina Solar + Storage - Pre-construction - delayed
Victory Pass Solar+ Storage - Pre-construction - delayed San Luis West Solar+ Storage - Pre-construction - delayed FCR: Ormat and Fish Lake - Pre-construction
LDS: Goal Line and Tumbleweed - Pre-construction
4 Item 2
Attachment 1
Clean Power Update, October 2022
Rabbitbrush Solar + Storage 40 MW
COD October 2022
Yellow Pine Solar+ Storage 50 MW
COD June 2023
5 Item 2
Attachment 1
Clean Power Update, October 2022
,, .... ~ .
......
.
.
08/219/21
10/21
11/21
12/21
1/22
2/223/224/22
7/228/229/22
1,000
750
500
250
0 10/19
12/19
2/20
4/20
6/20
8/20
10/20
12/20
2/21 4/21 6/21 8/21
10/21
12/21 2/224/226/228/22
400
300
200
100
0 = 25 Single-Family Projects
= 1 Multi-Family Property Project
(Number of households varies)
Goal: 220 HPWH by 2022
Funding: $1.15M
ONGOING METRICS SEPTEMBER 2022
Heat Pump Water Heater
Provide incentives for electric heat pump water heaters and service panel upgrades to residents using gas or
electric resistance heaters
= 10 Completed Installations
Single-Family Multi-Family
Lights On Silicon Valley
Provide incentives for enrolling solar and battery
systems in the SVCE grid services program
750 Single-Family + 5
Multi-Family Projects
Completed by 2023
Goal:

Funding: ≤ $7.4M
Households Supported
= 1 CARE/FERA Installation
Cumulative HPWH Installations
Cumulative Service Panel Upgrades
= 10 Completed Installations Above
the Initial Goal
345
106
448
Item 2
Attachment 2
Decarb Programs & Policy Update, October 2022
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-
•
it it it it it it it it it it
it it it it it it it it a
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• II
CALeVIP
Level 2 DCFC
000,000
000,000
000,000
0 9/21
10/21
11/21
12/21
1/22
2/223/224/225/226/22
7/228/229/22
150
100
50 0

ONGOING METRICS
Provide incentives for electric vehicle (EV) chargers
as part of a regional program
= 25 Level 2 Installations
150 Participants Complete
the Course (Phase 1)
Goal:

Funding: $1.5M
Completions
FutureFit Fundamentals
Provide financial relief to contractors by
expanding their knowledge of electrification
technologies
1K Level 2 + 85 DC Fast
Chargers by 2023
Goal:

Funding: $11.58M
= 5 Participants Complete Course
= 5 DCFC Installations
Reserved Waitlisted
Funds Issued
(To be released
in future years)
$1.18M $5.14M
$1.5M
$615K $700K
66 $6M
$4M
$2M
Being Processed
$2.28M
$600K
SEPTEMBER 2022
Registrations
145
Item 2
Attachment 2
Decarb Programs & Policy Update, October 2022 • •
i ------
------------
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------
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Permit Simplification Effort
Building Decarb Joint Action Plan
Resilience at Community Facilities
FutureFit Homes & Buildings
Regional Coordination
Click for More Information Active In Development Complete C&I Clean Power Offerings
All-Electric Showcase Awards
FutureFit Heat Pump Water Heater
FutureFit Fundamentals
Accessible Financing
Local Policy to Decarbonize Existing Buildings
Feasibility Assessment - Natural Gas Phase Out By 2045
EV Infrastructure Strategy & Plan
CA Electric Vehicle Infrastructure Project (CALeVIP)
Priority Zone DCFC
MUD Technical Assistance & Incentives
Fleet Electrification Grants
Regional Recognition
SV Transportation Electrification Clearinghouse (SVTEC) Other Virtual Power Plant
Customer Resource Center (eHub)
Community Engagement Grants
Innovation Partners
Innovation Onramp Pilots

PROGRAMS AT A GLANCE
POWER
SUPPLY
GRID

INTEGRATION

EDUCATION &

OUTREACH
BUILT

ENVIRONMENT

MOBILITY

INNOVATION
Reach Codes
CRCR Bill Relief
Lights On Silicon Valley
GridShift EV Charging
Data Hive
Medical Baseline Battery Program
SEPTEMBER 2022
Building Decarbonization Demonstration Grants
Decarbonization Engagement Grants
Item 2
Attachment 2
Decarb Programs & Policy Update, October 2022
-.......... .
-
1 1. Outreach Events & Sponsorships
Date Time Description Location
October 1 5:00 – 9:00 PM Greentown Los Altos Fundraising Dinner - sponsorship
Los Altos History Museum
Courtyard
October 8 10:00 AM – 3:00 PM Day on the Bay (regional event) - sponsorship & tabling
Alviso Marina County Park
October 15/16 10:00 AM – 4:00 PM Oktoberfest– branding sponsorship Downtown Campbell October 25-27 12:00 – 6:00 PM Verge Conference (regional event) (co-sponsor w/SJCE + EBCE) – Tabling
San Jose Convention Center
October 26 8:00 – 11:00 AM SVC Chamber: Mayors’ Breakfast: Sponsorship Delta Hotels Santa Clara Silicon Valley Clean Energy will be connecting with customers at upcoming community and industry events and will be supporting communities through event sponsorship.

Item 2
Attachment 3
Energy Services & Community Relations Update, October 2022 rA, s1L1coN VALLEY ~ CLEAN ENERGY
2 Participation Rate
Overall Participation
Rate
Residential 96.42%

96.35%
Commercial 96.59%

2. Customer Participation
Item 2
Attachment 3
Energy Services & Community Relations Update, October 2022 rA, s1L1coN VALLEY ~ CLEAN ENERGY
3 3. Customer Credit Updates
CARE and FERA Rate Relief Bill
• SVCE began crediting customer bills in April, and as of September 28, 2022, has applied over 170,000 bill credits of $12.50, totaling $2.13M. These credits will continue monthly for income-qualified CARE and FERA customers through November 2022.

Item 2
Attachment 3
Energy Services & Community Relations Update, October 2022 rA, s1L1coN VALLEY ~ CLEAN ENERGY
4 4. Member Agency Working Group -
September Update
The recent MAWG meeting was held virtually on September 29, 2022 and was attended by 9 different agencies and organizations with a total of 22 participants.

The following agenda items were presented and discussed:
• Member Agency Roundtable Check-In 2.
• Inflation Reduction Act (IRA)
• Carbon Neutrality from Zero Carbon Cities Advisor at ICLEI • Reach Code Update
• Building Decarbonization Demonstration Grants
• Energy Efficiency and Conservation Block Grants
Item 2
Attachment 3
Energy Services & Community Relations Update, October 2022 rA, s1L1coN VALLEY ~ CLEAN ENERGY
5 5. Press Releases & Media
Press Releases
• Adam Selvin Appointed Director of Energy Services and Community Relations at Silicon Valley Clean Energy, 09-19-2022
• Silicon Valley Clean Energy Awarded for Online Customer Resource Center, 09-26-2022 Media
• A better way to do smart EV charging: Talk to the car, Canary Media, 09-06-22 • Californians saved the grid again. They should be paid more for it, Canary Media, 09-15-2022 • Renter Protections in Equitable Building Decarbonization, Green Home Builder, 09-27-2022 • RPE Recognized For Outstanding Achievement in Promoting Renewable Energy, PerishableNews.com, 09-28-2022
Item 2
Attachment 3
Energy Services & Community Relations Update, October 2022 6 6. SVCE Awarded Leader in Education for the
eHub Customer Resource Center
• eHub is recognized for its educational impact and reach within SVCE’s member communities - inspiring, engaging and informing our community about the importance of electrification.
• Award was given by the Center of Resource Solutions (CRS) at the Renewable Energy Markets Summit on September 16, 2022, in Minneapolis The award recognizes the remarkable customer engagement with the eHub tools and resources, the successful educational email campaigns, and the innovative features within eHub that encourage customers to take action.

Item 2
Attachment 3
Energy Services & Community Relations Update, October 2022 • Subtitle
New SV Clean Energy
PowerPoint Template
Item 2
Attachment 4
Leg and Reg Update, October 2022
Item 2
Attachment 4
Leg and Reg Update, October 2022
Regulatory Update:

1. Resource Adequacy Reform (RA Reform)

2. Integrated Resource Planning (IRP)

3. Voluntary Allocation Market Offer (VAMO)

4. Net Energy Metering (NEM 3.0)
Legislative Update:

1. Bill Position Matrix

2. Legislative Timeline
2 Item 2
Attachment 4
Leg and Reg Update, October 2022
Item 2
Attachment 4
Leg and Reg Update, October 2022
Proceeding
Integrated
Resource Plan
(IRP)
RA: Central
Procurement
Entity
Purpose
Ensure long-term
system planning is on
track to meet state's
climate and reliability
goals.

CPE (IOU) procures
local RA on behalf of
service territory to
ensure local reliability
is maintained.

Status
CPUC issued a two part ruling in the IRP proceeding on 9/8:
1) Requesting comments on a CPUC staff white paper on adjustments to the IRP process which includes enforcement of IRP plans as a means to reduce reliance on procurement orders. SVCE will file comments (solo or in coordination with CalCCA) on November 7th.
2) Proposal to update the baseline resource list for past procurement orders to make all resources which come online after 1/1/2020 eligible. This would have the effect of making several SVCE projects not currently eligible for IRP compliance eligible. SVCE filed comments on September 26th supporting the ruling and suggesting additional modifications to the ruling which would help ease the burden of the IRP procurement orders on SVCE and other LSEs .

Following PG&E's second failure to procure sufficient resources to meet Local RA needs, Peninsula Clean Energy and Central Coast Community Energy issued a Petition for Clarification ("PFC") asking the Commission to clarify the obligations of other LSEs for RA procurement in instances where the CPE failed. SVCE sent a letter supporting this PFC on 9/26. 4
Item 2
Attachment 4
Leg and Reg Update, October 2022
Proceeding
Net Energy
Metering ("NEM

3.0")
Purpose
Update compensation structure
for rooftop solar owners.

Status
On May 9, the CPUC reopened the NEM Successor Tariff proceeding ("NEM 3.0"), specifically requesting comments on aspects of the original, December 2021 Proposed Decision (PD). The ruling seeks feedback from parties on the PD's proposed grid access charge, calculation of non-bypassable charges to NEM customers, export compensation and specific rules for low-income customers. The ruling makes no changes to the PD and SVCE's position on the NEM

3.0 PD remains unchanged.

In mid-August the CPUC extended the statutory deadline for the proceeding to August 27, 2023. While the CPUC is unlikely to use the full extension, the new PD is unexpected in the imminent future. We will continue to develop ideas for customer program offerings for current and prospective solar customers to promote solar-plus-battery installations in alignment with whole-home electrification.
5 Item 2
Attachment 4
Leg and Reg Update, October 2022
•
Item 2
Attachment 4
Leg and Reg Update, October 2022
SVCE had successful legislative year - was able to stop bad legislation and make meaningful changes to bills.

Bill Summary
AB 1814 Adds CCAs as eligible program
(Grayson) administrators for CPUC's
Transportation Electrification Program
SB 833 (Dodd) Creates grant program for local
government community resiliency plans
and to expedite permitting for
distributed energy resources.

SB 1112 Ensures notification to tenants and
(Becker) property owners for tariff on bill
decarbonization charges.

SB 1100 Establishes a process for removing
(Cortese) individuals who are willfully interrupting
meetings
SVCE Position
(Legislative Program
Policy)
Support
(Climate Mitigation/Clean
Energy Funding)
Support
(Climate Mitigation/Clean
Energy Funding)
Support
(Fuel Switching and
Electrification)
Support
(per Board direction)
Status
Died
Died
Signed by
Governor
Signed by
Governor
7 Item 2
Attachment 4
Leg and Reg Update, October 2022
Bill Summary
AB 2061 (Ting) Requires all entities that receive state or ratepayer funding to submit data on EV
station uptime, or the amount of time an EV
station is operational.

SB 1158 (Becker) Requires load serving entities to report hourly electricity purchases. Requires the
CPUC to assess whether reporting
demonstrates "adequate progress" towards
GHG targets.

AB 1944 (Lee) Allows legislative body members to
participate in meetings from private locations
and without publishing private addresses on
meeting notices.

SVCE Position
(Legislative Program
Policy)
Support (Fuel Switching
and Electrification)
Support (Climate
Mitigation and Clean
Energy Technologies)
Support
(per Board direction)
Status
Signed by
Governor
Signed by
Governor
Died,
legislative
vehicle became
AB 2449
(Rubio)
8 Item 2
Attachment 4
Leg and Reg Update, October 2022
Bill Summary
SB1393 Requires CEC to develop new guidelines for
(Archuleta) local existing building decarb ordinances.

SB 881 (Min) Integrated Resources Plans compliance
SB1287 Raises Financial Security Rate that CCAs must
(Bradford) carry to cover reentry fees for customers
involuntarily returning to a Provider of Last
Resort.

SB 1020 (Laird) Establishes interim SB 100 clean energy targets and requires state agencies to use 100% zero
and renewable energy by 2030.

AB 2204 Establishes a Deputy Secretary for Climate
(Boerner within the Labor and Workforce Development
Horvath) Agency to oversee clean energy workforce
training.

SVCE Position (Legislative
Program Policy)
Neutral
Opposed Unless Amended
Support (Climate Mitigation
and Clean Energy
Technologies)
Status
Died
Died
Died
Signed by
Governor
Signed by
Governor
9 •
•
•
•
•
•
•
•
•
•
•
•
Item 2
Attachment 4
Leg and Reg Update, October 2022
1/3: Legislature reconvenes
1/10: Governor submits budget
1/31: Deadline to move 2 year bills out of first house
2/18: Bill introduction deadline
4/29: Deadline for policy committees to move fiscal bills to fiscal committees 5/6: Deadline for nonfiscal bills to move to the floor
5/20: Deadline for fiscal committees to move bills to floor 5/27: Last day for bills to pass out of first house
6/15: Budget deadline
8/12: Fiscal Committees to move bills to floor
8/31: Last day for each house to pass bills
9/30: Governor's deadline to sign bills
10 SVCE Agenda Look Ahead
Oct. 2022 - Feb. 2023
OCTOBER 2022 NOVEMBER 2022 DECEMBER 2022 JANUARY 2023 FEBRUARY 2023 Board of Directors, October 12: Board of Directors, November 9:

Consent:

Minutes
September 2022 Treasurer Report
Committee Reports
Regular Calendar:

Reach Code Update
Community Energy Resilience Program
presentation
Future Public Meetings Planning (AB 2449)
Board of Directors, December 14:

Consent:

Minutes
October 2022 Treasurer Report
Committee Reports
Regular Calendar:

Rate Change
Reach Code Update
FutureFit Fundamentals Presentation
Acknowledgement of outgoing members
Board of Directors, January 11:

Consent:

Minutes
November 2022 Treasurer Report
Committee Reports
Regular Calendar:

Appointment of Chair and Vice Chair
Appointment of Executive Committee
Reach Code Update
Board of Directors, February 8:

Consent:

Minutes
December 2022 Treasurer Report
Committee Reports
Regular Calendar:

Appointment of SVCE Committees
Reach Code Recap
Updates to Exhibits C and D of the

SVCE JPA
Executive Committee, October 28, 11:30am :

Program Snapshots
Request for Recommendation to the SVCE Board
of Directors for approval of tariffed on bill pilot
program
Future Public Meetings Planning (AB 2449)
Executive Committee, Date TBD:

Program Snapshots: FutureFit Homes and
Buildings
SVCE Committee membership and
selection process review
Executive Committee, Date TBD:

Program Snapshots
Executive Committee, Date TBD:

Program Snapshots
Chair and Vice Chair Appointments
Executive Committee, Date TBD:

Program Snapshots
Item 2
Attachment 5

Page 1 of 4 ends

Staff Report – Item 3
Item 3: Approve SVCE 2022 Integrated Resource Plan
From: Girish Balachandran, CEO
Prepared by: Monica Padilla, Director of Power Resources Maren Wenzel, Senior Manager of Policy and Regulatory Analysis Date: 10/12/2022

RECOMMENDATION
Staff recommends that the Board approve the attached 2022 Integrated Resource Plan (IRP) in substantial form, delegate to the Chief Executive Officer the authority to make any further changes needed to ensure compliance with California Public Utilities Commission (CPUC) requirements and guidance before submission by November 1, 2022; and submit with the IRP the following three portfolios and necessary templates:

1. 100% Carbon Free / 65% RPS by 2030 (25 MMT target) as SVCE’s Preferred Conforming Portfolio;

2. 100% Carbon Free / 75% RPS by 2030 (25 MMT target) as a Conforming Portfolio; and

3. 100% Carbon Free / 100% RPS by 2035 (25 MMT target) as a Conforming Portfolio The attached IRP is provided in substantive form, however additional changes may be made to finalize the submittal templates, appendices, and IRP narrative including incorporating feedback from SVCE’s Board in the sections related to future activities, barriers to implementing SVCE’s IRP, and lessons learned.

BACKGROUND
The Integrated Resource Plan (IRP) is a document required of all load serving entities (LSEs) under the jurisdiction of the CPUC. California has approximately 50 LSEs under partial or full CPUC regulation. The purpose of the IRP process is to ensure that the electricity sector is on track to achieve its portion of the required statewide greenhouse gas (GHG) emissions reductions by 2035. Each cycle of the IRP process takes two years (this is the 2022-2023 cycle) and is accomplished in two basic phases; the planning phase and the procurement phase.

In the first phase, the CPUC provides LSEs initial modeling assumptions and criteria to help inform their plans and provide guidelines for compliance. LSEs use these inputs to support development of their individual IRP plans which are filed on November 1st. Following filing, CPUC staff will aggregate the individual IRPs into a statewide forecast of the electricity generation fleet in 2035. The aggregated portfolio is then tested through a series of models to check that it meets the reliability and climate goals set out by the CPUC.

Following the planning phase, there has historically been a procurement phase. In previous IRP cycles, CPUC staff have used the final assessment from phase one to determine if additional procurement is needed. If it is, the CPUC has ordered additional procurement to meet this need. In the past two cycles this resulted in the D.19-11-016 order for 3,300 MW and the D.21-06-035 order for 11,500 MW of capacity (known as MTR Order or Mid-Term Reliability Order). More recently CPUC staff indicated that they would like to alter the procurement track going forward. Instead of issuing additional procurement orders, the CPUC may require Item 3
/ A"\ SILICON VALLEY
~CLEAN ENERGY
Agenda Item: 3 Agenda Date: 10/12/2022

Page 2 of 4 ends

that LSEs prove that they are on track to meet their individual IRP targets. Failure to do so may results in penalties for the LSEs. Details of this proposal are still nascent. However the potential for enforcement of the 2022 IRP portfolios presents a new consideration when adopting a 2022 Preferred Conforming Plan for SVCE.

SVCE’s preparation process for this IRP began in June 2022, with a Board workshop on the future of the California grid. Over the summer of 2022, staff worked with Ascend Analytics to develop a series of Conforming Portfolios, which meet the compliance requirements of the IRP while exploring the impact of varying RPS targets for SVCE. In August 2022, staff met with the Board’s Executive Committee to provide an overview of the IRP process and portfolios under consideration. In September 2022, staff met with the full Board to provide an update on the draft portfolios and initial key topics for the SVCE narrative. Staff utilized feedback from this session in finalizing its portfolios, including the addition of a new case, the 65% RPS Conforming Plan.

The IRP document staff seeks approval of today reflects the results of their analysis, the guidance received from the Board during the 2022 IRP workshops and Board updates, and specific instructions received by the CPUC for submitting IRPs. In future IRP cycles, SVCE staff intends to continue using the IRP as a way to structure internal conversations about planning and procurement in addition to ultimately producing a compliance document for the CPUC.

ANALYSIS & DISCUSSION
This IRP contains three portfolios: a Preferred Conforming Portfolio and two Conforming Portfolios exploring alternate RPS targets. Though the CPUC is considering both 25 and 30 MMT GHG targets for the statewide electricity sector this cycle, LSEs have the option to show results for only the lower emissions case if they chose. Based on feedback from the SVCE Board, SVCE staff took this approach and each of the three portfolios exceeds SVCE’s share of the 25 MMT target. SVCE received a GHG benchmark for this scenario that represents SVCE’s proportional load-share of the total allowable electricity sector emissions in each scenario.

Core to SVCE’s IRP analysis was working to ensure that all portfolios provide a reasonable balance of clean energy, reliable capacity and affordable rates. Each scenario was therefore assessed on these three basic components. In addition to achieving the primary portfolio optimization goals noted above, staff also worked to ensure that the portfolios reasonably balanced risk while ensuring compliance with the requirement of the IRP as set out by the CPUC.

All three Conforming Portfolios include SVCE’s existing contracted resources; generic contracts to satisfy the MTR order; assume 10% of its energy needs will be met with Index plus Renewable Portfolio Stantard (RPS) short-term contracts; assume an additional 30 MW firm hydro contract; allow up to 500 MW of short-term Resource Adequacy (RA) for reliability goals; and include SVCE’s share of the PG&E hydro and nuclear allocations. For resources not yet under contract, SVCE staff made assumptions of around availability of resources, costs, viable start dates and terms. These resources merely illustrate how SVCE could achieve the goals of the Conforming Portfolios, but don’t represent actual market offers and/or resources.

The Preferred Conforming Portfolio illustrates how SVCE can achieve a 65% RPS target while maintaining 100% carbon free electricity supply on an annual basis. This case is intended to reflect the current Board adopted RPS target of 60% plus an additional 5% to meet the needs of our Green Prime and Green Prime Direct customers. This portfolio also includes an additional 420 GWh in 2030 and 520 GWh in 2035, roughly 10% of annual load, to be met by an Index plus GHG-free short-term contracts. Of the three scenarios, this one requires the smallest amount of new resource build. In this scenario, SVCE’s portfolio would add 242 MW of new resources by 2035, consisting of geothermal (7 MW), solar for hybrid (70 MW), battery for hybrid (35 MW), and wind (130 MW).

The other two Conforming portfolios, explore options for SVCE to achieve its 100% annual carbon free energy goal, while relying on differing levels of RPS resources. In both cases, the portfolio excludes the additional hydro noted above for the Preferred Case. Additionally, in the 100% RPS by 2035 case, SVCE no longer Item 3
Agenda Item: 3 Agenda Date: 10/12/2022

Page 3 of 4 ends

utilizes its PG&E hydro allocation as it is, by definition, meeting its energy needs with RPS only resources.

These cases are largely intended to explore the impact of lowering SVCE’s reliance on hydro power in the future.

The table below shows SVCE’s benchmarks for the 25 MMT scenario and the forecast 2030 and 2035 emissions of each of the three portfolios included in this IRP. 2030 2035
SVCE GHG Benchmark (Million Metric Tons MMT) 0.412 0.334 100% Carbon Free / 65% RPS by 2030 0.261 0.330
100% Carbon Free / 75% RPS by 2030 0.380 0.332
100% Carbon Free / 100% RPS by 2035 0.243 0.268
All portfolios put SVCE on a path to achieving a 24x7 clean energy portfolio, should the Board adopt such a target in the future (one of the five Strategic Focus Areas adopted by the Board is to examine moving SVCE’s portfolio in the direction of 24x7 clean energy). Of the three conforming portfolios, the 65% RPS case achieves the highest Carbon Free Energy (CFE) score in 2030. The 65% Plan achieves a 95% CFE score compared to 93% and 94% for the 75% RPS and 100% RPS cases, respectively. SVCE staff will continue to explore the affordability and viability of developing a 24x7 clean portfolio, but finds that the 65% RPS case provides the organization reasonable optionality in regard to future clean energy targets.

STRATEGIC PLAN
Delegating the authority to the CEO to submit the 2022 IRP directly supports SVCE’s proposed 2022 Strategic Plan Focus Area: “Explore 24x7 clean energy delivery at scale, to improve on the current 100% clean energy goal”; and further supports Goal 4, “Plan for resources to meet SVCE’s mission while balancing multiple stakeholder objectives.”

ALTERNATIVE
If the Board does not delegate authority to the CEO to approve final changes to this IRP before submission, SVCE staff may have to submit the document as it is. Given that there is ongoing review of the document and additional edits being made, an inability to refine the document will increase the likelihood of it being rejected by the Commission and SVCE being found out of compliance.

Alternatively, the Board may decide to have an additional special session to finalize approval of the IRP before October 28th, 2022.

The Board may decide to submit only SVCE’s Conforming Preferred Portfolio or only the Conforming Preferred Portfolio and one other Conforming Portfolio. Should the Board make such a decision, staff will need to work expeditiously to edit the IRP narrative to reflect the removal of one or more portfolios. While not necessary, submitting additional Conforming Portfolios demonstrates to the CPUC that SVCE has endeavored to put forth a Preferred Portfolio that has merit compared to other considered alternatives and helps show our commitment to meeting a carbon-free energy policy and that it understands the challenges of relying on hydroelectric resources.

FISCAL IMPACT
This IRP alone does not have an individual fiscal impact. Relative to previous IRP cycles, the potential for “enforcement” of this IRP is greater, meaning that the Commission may order SVCE to procure either the resources or attributes in its Preferred Conforming Portfolio. SVCE staff intends to advocate to ensure CCAs such as SVCE maintain procurement autonomy on a forward going basis. Though it forecasts procurement of certain resources out to 2035, these resources merely illustrate the types of resources needed. Actual resources needed to meet SVCE’s IRP goals will be determined based on future request for offers and actual market offers. Additionally, approval of the IRP does not remove any of the existing Board approval Item 3
Agenda Item: 3 Agenda Date: 10/12/2022

Page 4 of 4 ends

requirements for individual PPAs or annual budgeting. The Board will thus have separate opportunities to review and approve the expenditures to support the procurement goals in this IRP.

ATTACHMENTS

1. Draft SVCE 2022 Integrated Resource Plan
Item 3
Template posted by Commission on June 15, 2022
Standard LSE Plan
Silicon Valley Clean Energy
2022 INTEGRATED RESOURCE PLAN
November 1, 2022
Item 3
Attachment 1
1 Table of Contents
I. Executive Summary .....................................................................................................3 II. Study Design ................................................................................................................5 a. Objectives...............................................................................................................5 b. Methodology..........................................................................................................6 i. Modeling Tool(s).................................................................................................6 ii. Modeling Approach ............................................................................................8 III. Study Results .............................................................................................................10 a. Conforming and Alternative Portfolios................................................................10 i. Contracted Resources Included in All Portfolios..............................................11 ii. Generic Resources Included in All Portfolios ...................................................11 iii. Selected Conforming Portfolio Resources........................................................13 iv. Comparison to Preferred System Plan Portfolio ..............................................15 b. Preferred Conforming Portfolios .........................................................................15 i. RPS and GHG targets ........................................................................................16 ii. Ratepayer Impact .............................................................................................17 iii. Reliability, Diversity and Grid Management ....................................................17 c. GHG Emissions Results.........................................................................................18 d. Local Air Pollutant Minimization and Disadvantaged Communities...................20 i. Local Air Pollutants...........................................................................................20 ii. Focus on Disadvantaged Communities ............................................................21 e. Cost and Rate Analysis.........................................................................................22 f. System Reliability Analysis...................................................................................25 g. High Electrification Planning................................................................................27 h. Existing Resource Planning ..................................................................................28 i. Hydro Generation Risk Management ..................................................................29 j. Long-Duration Storage Planning..........................................................................31 k. Clean Firm Power Planning ..................................................................................32 l. Out-of-State Wind Planning.................................................................................32 m. Offshore Wind Planning.......................................................................................33 n. Transmission Planning .........................................................................................34 Item 3
Attachment 1
2 IV. Action Plan.................................................................................................................37 a. Proposed Procurement Activities and Potential Barriers....................................37 i. Resources to meet D.19-11-016 procurement requirements .........................38 ii. Resources to meet D.21-06-035 procurement requirements, including:........38 a. 1,000 MW of firm zero-emitting resource requirements................................38 b. 1,000 MW of long-duration storage resource requirements ..........................39 c. 2,500 MW of zero-emissions generation, generation paired with storage, or demand response resource requirements................................................................40 d. All other procurement requirements...............................................................40 iii. Offshore wind ...................................................................................................41 iv. Out-of-state wind .............................................................................................41 v. Other renewable energy not described above ................................................41 vi. Other energy storage not described above .....................................................42 vii. Other demand response not described above .............................................42 viii. Other energy efficiency not described above...............................................44 ix. Other distributed generation not described above .........................................45 x. Transportation electrification, including any investments above and beyond what is included in Integrated Energy Policy Report (IEPR)......................................45 xi. Building electrification, including any investments above and beyond what is included in Integrated Energy Policy Report (IEPR) ..................................................46 xii. Other.................................................................................................................49 b. Disadvantaged Communities...............................................................................49 c. Commission Direction of Actions.........................................................................55 V. Lessons Learned.........................................................................................................56 Glossary of Terms..............................................................................................................58 Item 3
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3 I. Executive Summary
Silicon Valley Clean Energy (SVCE) is pleased to present herein its 2022 Integrated Resource Plan (IRP).

SVCE is a community choice aggregation program (CCA) operated by the Silicon Valley Clean Energy Authority (SVCEA), a California joint powers authority (JPA) composed of twelve cities plus the unincorporated areas of Santa Clara County. As a JPA, SVCEA is a local government agency that operates on a not-for-profit basis and is controlled by, and accountable to, the communities it serves.

SVCE is focused on helping its member communities advance their greenhouse gas (GHG) reduction goals by providing a clean source of energy and supporting economy-wide decarbonization through electrification while maintaining cost competitive rates and furthering system reliability. SVCE appreciates this opportunity to highlight its progress so far and to contribute to the statewide IRP planning exercise.

SVCE’s accomplishments since its launch in 2017 include achieving an annual carbon-free1content which includes an aggressive Renewable Portfolio Standard (RPS) of approximately 50% since its inception; successfully offering a voluntary 100% RPS product to approximately 4% of its load; demonstrable progress towards meeting SB 350 long-term RPS procurement mandates through the successful execution of fourteen long-term power purchase agreements; strong performance in meeting California’s Resource Adequacy mandates; and an expansive list of program offerings to promote decarbonization and electrification within SVCE’s service territory. All this was achieved while maintaining competitive rates relative to the incumbent investor-owned utility (IOU) and building a financially stable organization. SVCE has been awarded an investment grade credit rating by Moody’s of Baa2 and A Stable by S&P. This rating was awarded because of SVCE’s ability to meet all procurement mandates, demonstration of strong leadership, and ability to understand and manage risk and build a financially viable organization.

The 2022 IRP is SVCE’s third IRP. In the process of creating it, SVCE engaged its community, stakeholders, and Board of Directors to establish high-level goals, objectives and a vision for where SVCE needs to be in and before 2035. SVCE’s planning and electricity procurement efforts will help meet California’s aggressive and necessary GHG reduction goals while charting a path towards providing SVCE’s customers carbon-free electricity to promote electrification in an affordable and reliable manner.

To this end, SVCE has identified three key goals: GHG reductions, affordability and reliability. It is not sustainable or responsible to present a portfolio which merely looks at one of these goals without considering the consequences for the others. This is demonstrated through SVCE’s prior and ongoing procurement efforts, which balance aggressive deployment of solar photovoltaics (PV) with paired storage facilities, wind and additional long-term purchases of new and existing geothermal and long-duration storage resources. 1 SVCE tracks its emissions in the CEC’s Power Source Disclosure report. In 2020 and 2021 SVCE reported 7 and 18 lbs of CO2e/MWh, respectively.

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4 In this IRP, SVCE presents three Conforming Portfolios all of which exceed the 25 MMT target. The Preferred Portfolio presents the expected least cost, best fit portfolio which allows SVCE to achieve a 65% RPS target by 2030, while maintaining an 100% carbon-free energy portfolio on an annual basis.

SVCE includes in this IRP filing two other Conforming Portfolios. The first achieves a 75% RPS portfolio by 2030 which is maintained thereafter and the second explores the required resources to achieve a 100% RPS portfolio by 2035. These cases are intended to explore the viability and affordability of a more aggressive RPS target while simultaneously reducing hydro reliance and meeting the organization’s annual GHG-free goals.

In addition to the three Conforming Portfolios, SVCE completed analysis of several sensitivities intended to address specific questions posed in this narrative. This includes a high electrification plan and a policy sensitivity to understand the impact of an offshore wind order, should the Commission issue one. SVCE presents the results of these sensitivities within this document for the purpose of addressing these planning questions but does not include them as formal conforming or alternate portfolios.

The modeling and results for this IRP, as described in Sections II and III below, relied heavily on Ascend Analytics, including both the Automated Resource Selection (ARS) capacity expansion tool and the PowerSIMM production cost model. Combined, these tools developed least cost, best fit portfolios for SVCE which achieves the necessary reliability, RPS and GHG metrics for each portfolio. In Section IV, SVCE discusses its procurement activities to date along with potential barriers, risks and other activities which may impact the viability and likelihood the Preferred Conforming Portfolio presented herein comes to fruition. Finally, in Section V SVCE considers additional changes to the IRP process which may improve California grid planning.

In the coming years SVCE’s procurement activity will focus on balancing additional new renewable procurement with existing cost-effective contracts, diversifying its portfolio in order to better match its renewable generation profile to its customers demand curve, and planning for potential changes in the large hydro market as environmental conditions evolve and more retail suppliers are interested in carbon-free power. SVCE is also investing heavily in programs to help its communities decarbonize their building and transportation sectors by facilitating building electrification, access to electric vehicle charging infrastructure, and decarbonization-related workforce development as shown in Figure 1.

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5 Figure 1. SVCE's approach to deep decarbonization is to impact all four elements II. Study Design
a. Objectives
SVCE’s purpose in undertaking this modeling exercise was twofold. First and foremost, SVCE sought to produce an IRP that would represent SVCE’s procurement policies as comprehensively as possible while simultaneously meeting the compliance requirements of this IRP process. Second, SVCE sought to undertake analysis that would be internally useful for planning purposes and instructive on how SVCE might wish to modify its procurement strategy in the future should market conditions make the current approach less feasible or more expensive.

In order to achieve these goals, SVCE took a three-phase approach, beginning in June 2022. The first phase involved conversations with SVCE’s Board of Directors about emerging trends in the California grid and how they relate to key procurement decisions and aspects of SVCE’s procurement strategy. Key considerations included hydro reliance, reliability, demand side innovation and clean energy goals and metrics. Each of these considerations are discussed in further detail in this document. An important output of the discussions was the decision for SVCE to focus solely on portfolios which exceed its share of the 25 MMT targets.

Based on board feedback, SVCE ultimately decided to assess the impact of three Conforming Portfolios, each of which exceed the 25 MMT 2035 benchmark provided by the CPUC. After modeling and analysis, SVCE has settled on a 65% RPS portfolio in 2030 as its Preferred Conforming Plan. This represents the board adopted target of 60% RPS by 2030, with additional RPS to meet the needs of its Green Prime customers and select large customers. While the organization assessed numerous alternatives in the process of developing this IRP, it provides two other Conforming Portfolios. The first achieves a 75% RPS target by 2030 and the second achieves a 100% RPS target by 2035. These portfolios were assessed to better understand the costs, viability and portfolio risks associated with increasing renewables and reducing reliance on hydro and other GHG-free resources in the future while maintaining a 100% clean energy portfolio on an annual basis.

After portfolio assumptions were developed, SVCE began the modeling process as described below. In developing modeling assumptions SVCE utilized the assigned load forecast and built model constraints into its capacity expansion tool to ensure that each portfolio met or exceeded its share of the 25 MMT targets as well as resource adequacy targets.

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6 b. Methodology
i. Modeling Tool(s)
To evaluate the potential future portfolios described in the previous section SVCE employed the PowerSIMM modeling platform developed by Ascend Analytics. The Automated Resource Selection (ARS) module of PowerSIMM was used for resource selection, and the dispatch module was used to investigate hourly operations, risk and cost of potential future portfolios. An overview of the modeling framework employed for development of the 2022 IRP portfolios is shown in Figure 2.

ARS is PowerSIMM’s capacity expansion module. ARS selects the least-cost resource procurement or retirements which satisfy the model constraints. The models begin with a dispatch of existing and candidate resources to determine variable costs, energy generation, carbon emissions, and renewable generation over the time horizon of the study. SVCE employed the following model constraints:

1. Reserve Margin – Requires portfolio to meet reserve margin requirements set by the IRP process

2. Energy Generation – Requires portfolio to supply at least 100% of SVCE load with SVCE resources

3. Emissions Target – Requires SVCE procure carbon free energy to meet or exceed the 25 MMT target given the expected system emissions each hour from the CSP

4. RPS Constraint – Requires portfolio supply meet RPS targets Outputs from ARS provide the timing and quantity of resources to procure through the study horizon which satisfy the above constraints at the lowest cost. The model considers full resource costs including fixed costs and variable costs. Market sales revenue is treated as a negative cost in the model. The next stage of the planning process is to evaluate ARS output portfolios in the CSP tool. Due to discrepancies between the Ascend modeling tools and the IRP compliance tools, cases were then post-processed to ensure a least cost fit which achieved the required RPS, RA and GHG metrics2. Finally, the portfolios were evaluated in production cost models to calculate total portfolio costs and gauge portfolio risk.

PowerSIMM captures and quantifies elements of risk through the simulation of meaningful uncertainty with weather as a fundamental driver. PowerSIMM is a “hybrid model,” meaning it uses both market data and long-term fundamentals to simulate load, renewables, and CAISO spot market prices against which resources are dispatched and valued. To better capture the uncertainty in future conditions, a stochastic framework enabled simulation over a wide range of different future conditions, where market prices, weather patterns, renewable generation, and load significantly vary. To capture the risk associated with the distribution of portfolio costs (resulting from the stochastic simulation), a “risk premium” metric was used that indicates the cost at risk or the actuarial value of a portfolio’s exposure to market price volatility, variation in generation and load, and changes in weather conditions. 2 SVCE ensured that the RA, RPS and GHG metrics for compliance are achieved in all portfolios. In instances where the annual GHG-free percentage of energy from the CSP tool was less than 100%, SVCE relied on the modeling results of the Ascend tool. Due to the deliverability terms of SVCE's contracts, it expects to achieve 100% GHG-free energy with the portfolios presented, even in instances where the CSP tool does not achieve this target. SVCE monitors its contracted energy against its annual GHG-free target and intends to procure additional short-term GHG-free resources to maintain that target, if needed.

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7 Figure 2. Modeling framework to develop compliant, reliable, and least cost portfolios in PowerSIMM.

Figure 3 shows PowerSIMM’s modeling framework. PowerSIMM simulates hourly spot price conditions (i.e. “during delivery simulations”) as a function of weather, system load, and renewables. The simulated spot prices are scaled so that the average of all spot prices equals the simulated on-peak/off-peak monthly forward price. Market forward data in the near term (next 5 years) is blended with Ascend’s long-term fundamental forecasts of gas and power prices driven by supply fundamentals in the WECC.

Run ARS for selec on of
op mized capacity plan
for reference case, low
and high load cases
ARS selects least cost
combina on of
resources to meet
future load while
maintaining system
needs and policy
mandates (RPS, CETA,
capacity targets)

se ARS results to build
op mized por olios
Run hourly dispatch
model for 100 di erent
futures to provide
sta s cal results for
por olio costs, carbon
emissions, net posi on,
market purchases, etc.

Inves gate sensi vi es
such as low water year
with high prices

Test por olios to ensure
Grant P D can meet load
on an hourly basis
throughout the year
Run reliability study and
assess metrics of interest
(e.g. L LH, L LE)
Provide updated values
for capacity contribu on
of new resources in
por olio

Collect input and build
reference case model
Validate exis ng
por olio candidate
resource pool
Run ini al economic
dispatch study for every
resource to assess cost,
genera on, and
resource contribu on
to targets of interest
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8 Figure 3. Schematic diagram of PowerSIMM modeling framework.

PowerSIMM captures a meaningful range of uncertainty driven by the factors that create price risk in power markets, including variability in weather, load, renewable output, congestion risk, and forward price volatility. PowerSIMM trains its econometric “sim engine” model with up to 30 years of historical weather to model the relationships between weather, load, and renewables. Ascend parameterizes its weather uncertainty using both time (month, day, hour) and autoregressive terms to create discrete chronological weather simulation. Weather serves as an input to load and renewable simulation for both SVCE load and CAIS system load. For this study each portfolio was put through 50 “sim-reps,” which are simulation processes of 8760 hours across the planning time horizon. Results were summarized across the sim-reps to capture the full distribution of outcomes, including summarization of mean, median, P5, and P95 states.

SVCE selected PowerSIMM and the ARS module as the primary capacity expansion, production cost and valuation tool for this IRP because it provides deeper insight and precision in valuation relative to a sector-wide capacity expansion model like RESOLVE.3 PowerSIMM was used as a simulation model to valuate SVCE’s load and resources within the context of both CAIS hubs (NP-15) and specific LMPs (for PPA resources).
ii. Modeling Approach
In developing its models, SVCE first input historical generation data, cost projections, and other relevant input data into the ARS module. SVCE utilized the CSP generation shapes for new generic resources and included all resource types selected in the RESOLVE LSE Filing Requirements results (“RES LVE Results”) 3 RESOLVE is a high-level capacity expansion optimization model that selects system level (i.e. WECC or California wide) resources to meet a set of load, emissions, and reliability constraints at minimum cost using a 37-day simplification.

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9 as candidate resources. After evaluation of RESOLVE cost assumptions, SVCE staff opted to utilize the cost curves developed by Ascend Analytics which more closely represent prices observed in recent RFOs.

This price forecast has similar cost decrease trajectories to RESOLVE over time. In some instances, such as for offshore wind, where staff did not have internal cost projections, the IRP cost assumptions were used.

To ensure that model results met the RA, RPS and GHG targets for each model run, Ascend Analytics built relevant constraints into the model. Though SVCE decided to exceed the 25 MMT ton target for each Conforming Portfolio, the results of the ELCC studies are not directionally consistent. To ensure that SVCE’s Conforming Portfolios are compliant with both the 25 MMT and 30 MMT RDTs as required, staff used the lower ELCC for each resource in each year to ensure compliance. In initial model runs these were validated to ensure alignment with both the reliability output of the Resource Data Template (“RDT”) and the Clean System Power (“CSP”) tool. In some instances, incremental post-processing was required to adjust the ARS portfolio results to the IRP compliance tools.

Once assumptions were input, staff verified that modeled systems behaved as anticipated under alternative weather and pricing conditions. An economic dispatch study for every resource to assess costs, generation, and contribution to targets of interest was then run. These inputs were fed to the ARS module, which selected new resources based on minimizing the cost of procuring and operating new and existing resources while also meeting the constraints built into the model to ensure system requirements for RA, RPS and GHG constraints were met. After portfolios were selected, they were evaluated in PowerSIMM to understand their operational feasibility, cost, portfolio risk and the overall implications of the portfolio.

In addition to the conforming portfolio runs filed as part of this IRP, SVCE also completed several sensitivities intended to help inform this narrative. Namely, SVCE did an ARS run utilizing the “ATE” IEPR inputs included in the LSE Filing Requirements RESOLVE package released June 29, 2022 to assess what additional resources may need to be built under the High Electrification scenario. Additionally, though ARS did not select any offshore wind in any conforming study, SVCE completed a model run which forced in SVCE’s load share allocation of the RES LVE model results to assess how a potential procurement order would impact its overall portfolio build. SVCE did not complete a full production cost model for these sensitivity runs but rather presents the results solely for the purpose of discussion in the relevant narrative sections below.

For the Preferred Conforming Portfolio filed as part of this IRP, SVCE completed analysis in addition to what was required for completion of the RDT and CSP tools. First, SVCE assessed the output of the ARS results in its 24-slice RA framework tool to assess likely portfolio fit under the soon to be implemented RA reforms adopted in D.22-06-050. The intention of this assessment was to ensure that resources selected for the portfolio provided RA value not only based on IRP ELCC calculations but also for likely, albeit still undefined, RA compliance requirements going forward. While no specific metrics were derived for this effort, staff used these results to evaluate the reasonableness of each portfolio.

SVCE is actively considering pathways to develop a portfolio which achieves GHG-free energy on an hourly basis each day of the year. While the SVCE board has not set a specific target to achieve such a “24x7” clean energy portfolio, in which its load is met by clean resources on an hourly basis, it is Item 3
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10 important to SVCE that procurement decisions made today help enable such a portfolio in the future should the Board provide such direction. Additionally, in 2022 SVCE announced a partnership with Google for a 24x7 Carbon-Free Energy Agreement. nder this agreement SVCE will serve Google’s Mountain View and Sunnyvale offices by matching carbon-free electricity to Google’s local demand at least 92% of all hours of the year. This is measured using a Carbon-Free Energy (“CFE”) score. To estimate the impact of each portfolio on SVCE’s ability to achieve a future 24x7 clean portfolio, staff performed a modified version of the CFE calculation to assess hourly carbon-free energy for each Conforming Portfolio4. These results are included in Section III below.

III. Study Results
a. Conforming and Alternative Portfolios
SVCE has chosen to submit three Conforming Portfolios for this IRP:
• 65% RPS Preferred Conforming Portfolio: based on the 25 MMT target, this portfolio explores required resources to meet SVCE’s current board adopted target of 60% RPS by 2030, with an additional 5% to meet the needs of its Green Prime customers and select large customers, while maintaining 100% GHG-free power on an annual basis.
• 75% RPS Conforming Portfolio: based on the 25 MMT target, this portfolio explores which resources would be required to meet a 75% RPS target starting in 2030 while maintaining 100% carbon free energy on an annual basis.
• 100% RPS Conforming Portfolio: based on the 25 MMT target, this portfolio explores which resources would be required to meet a 100% RPS target by 2035. In this scenario SVCE removes its PG&E hydro allocation starting in that year, but utilizes it in other years to achieve 100% carbon free energy on an annual basis.

SVCE’s Board of Directors has selected the 65% RPS Conforming Portfolio as its preferred portfolio and the portfolio that most accurately reflects SVCE’s intended procurement strategy going forward.

This portfolio is fully consistent with SVCE’s mandatory Board-adopted procurement requirements, and provides a diverse and balanced portfolio that achieves results consistent with SB 350’s reliability, GHG-reduction, RPS, disadvantaged communities, renewables integration, and other requirements. SVCE discusses its rationale for selecting this as its preferred portfolio in more detail in section III b below.
4 The CFE calculation Is described In Google's " 24/7 Carbon-Free Energy: Methodologies and Metrics" report, available: https://www.gstatic.com/gumdrop/sustainability/24x7-carbon-free-energy-methodologies-metrics.pdf For purposes of the IRP, staff utilized the 30 MMT CSP results to calculate the grid CFE score in each hour of the year.

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11 i. Contracted Resources Included in All Portfolios
Portfolios developed by SVCE as part of its 2022 IRP modeling exercise included all of the resources SVCE had under contract as of August 1, 2022 as described in the IRP filing requirements document5. In addition to the contracted resources, SVCE included its portion of the CAM and CPE allocations per the filing requirement6.

The following tables summarizes the SVCE resources included in all portfolios:

Table 1: SVCE Contracts (Capacity, MW)
2024 2026 2030 2035
Hybrid
[generator, battery]
[365.5,
131.125]
[365.5,
131.125]
[365.5,
131.125]
[365.5,
131.125]
Geothermal 59 59 59 52
Wind 154 154 154 111
Solar 80 80 80 80
Long-Duration Storage 0 29 29 29
Table 2: SVCE Contracts (Energy, GWh)
2024 2026 2030 2035
Hybrid 1036 1148 1126 1103
Geothermal 573 697 575 556
Wind 492 492 492 324
Solar 102 106 104 83
Other7 22 23 22 18
ii. Generic Resources Included in All Portfolios
In addition to known contracted resources, SVCE assumed it would continue to receive its hydro allocations from PG&E through the IRP planning horizon. SVCE also included its allocation of the Diablo Canyon Nuclear Power Plant through the originally planned retirement date of each unit in 2024 and 5 Aligned with SVCE's 2022 RPS Procurement Plan, SVCE has not Included the Big Beau solar plus storage PPA that was executed following a 2018 RFO. This contract Is currently under dispute with the developer, EDF. 6 CAM and CPE allocations are not shown In Tables 1 and 2 given confidential nature of SVCE's peak share allocation.
7 Includes small portions of biomass and biogas included as part of PG&E's Voluntary Offer allocation.

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12 20258. SVCE also included sufficient energy to meet its remaining obligations under the D.21-06-035 procurement order (MTR order).

Each portfolio also assumed a portion of its procurement needs will continue to be met by short-term contracts from existing resources. SVCE assumed that approximately 10% of SVCE load can be met using short-term Index + RPS contracts over the planning horizon. Given SVCE has historically procured 50% of its loads utilizing such transactions, SVCE believes this represents a conservative view of market potential. SVCE also included a generic hydro contract capable of delivering both energy and capacity over the planning horizon based on its experience acquiring import RA from Washington met through hydro as the specified resource.

Finally, SVCE set an internal planning target for approximately 15% of its annual energy needs to be met with geothermal resources. SVCE’s geothermal target is intended to ensure sufficient diversity in its RPS resource pool and to help support system reliability. To help meet this goal, SVCE assumed that 10 MWs of existing geothermal can be contracted by 2030. SVCE has seen such existing geothermal resources offered into previous RFOs and believes the capacity can reasonably be contracted. In all portfolios additional geothermal capacity is selected to help meet this goal.

Table 3: Additional Generic Resources (Energy, MWh)
2024 2026 2030 20359
PG&E Hydro Allocation 320 320 320 320
PG&E Nuclear Allocation 756 0 0 0
Index + RPS 368 372 383 404
Additional Hydro 110 110 110 140
Geothermal 0 0 78 78
In addition to the resources above, SVCE allowed up to 500 MW of generic RA resources to be procured on a short-term basis each year to meet its RA needs. As a post-processing step, SVCE “right-sized” the total contract amount of these RA resources for each portfolio to ensure that the portfolio was not over-procuring such resources. This value was deemed reasonable by the SVCE modeling group based on experience in the market. Further, this amount represents less than SVCE’s load share of the existing fossil fleet.

For the 65% RPS Preferred Conforming Case, SVCE included an additional 430 MWh of imported, energy only, hydro, roughly doubling the hydro in the portfolio. 8 SVCE calculated its DCPP allocation utilizing the 2021 allocation values, assuming each unit had equal and constant production throughout the year. The 2024 allocation was calculated assuming unit 1 would provide half of the total energy shown by PG&E in 2021 through November and unit 2 would provide the same energy over the entire year. The 2025 allocation assumed unit 2 would provide 75% of its assumed 2021 output. 9 Hydro is not used in 2035 for the 100% RPS case.

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13 iii. Selected Conforming Portfolio Resources
Table 4 below shows the cumulative build for new resources in 2030 and 2035 for each portfolio. Across all scenarios, SVCE models did not select new resources prior to 2028.

Table 4: Cumulative Selected New Resources by Portfolio 2030 2035
65% RPS 75% RPS
100% RPS
by 2035 65% RPS 75% RPS
100% RPS
by 2035
Solar for Hybrid 0 70 83 70 105 120
Storage for Hybrid 0 35 41 35 53 60
Wind, Northern CA 0 0 150 100 150 305
Wind, Wyoming 0 0 0 30 110 110
Geothermal 7 7 27 7 7 27
Figure 4, 5 and 6 below show the cumulative incremental capacity needs for each Conforming Portfolio by year.

Figure 4. Incremental Capacity for 65% RPS Case.
0 50
100
150
200
250
300
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 MW, Cumulative
Year
Selected New Capacity - 65% RPS Case
Solar for Hybrid Storage for Hybrid Wind, Northern CA Wind, Wyoming Geothermal Item 3
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14 Figure 5. Incremental Capacity for 75% RPS Case.

Figure 6. Incremental Capacity for 100% RPS Case.

Across all Portfolios, the model found a mix of wind and hybrid resources to be the most cost-effective way to meet its RPS, GHG emissions and RA targets. The model did not by default select geothermal, however, to meet its 15% annual energy target from geothermal resources, new geothermal was added in all scenarios. Additional geothermal was added as a post-process step to the 100% RPS by 2035 case to ensure wind build did not exceed reasonable levels.

The primary cause of differences between the Preferred Conforming case and the other two submitted Conforming cases was the differing RPS targets in each scenario. As RPS targets increase, SVCE’s reliance on hydro power falls as the energy is replaced by new RPS resources. 0 100
200
300
400
500
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 MW, Cumulative
Year
Selected New Capacity - 75% RPS Case
Geothermal Solar for Hybrid Storage for Hybrid Wind, Northern CA Wind, Wyoming 0 100
200
300
400
500
600
700
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 MW, Cumulative
Year
Selected New Capacity - 100% RPS by 2035 Case
Geothermal Solar for Hybrid Storage for Hybrid Wind, Northern CA Wind, Wyoming Item 3
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15 iv. Comparison to Preferred System Plan Portfolio
Table 5 below summarizes SVCE's Conforming Portfolio capacity selection results against its load share allocation of the 2021 Preferred System Plan (PSP) Portfolio.

Table 5: SVCE Portfolio Results Compared to Load Share Allocation of 2021 Preferred System Plan Portfolio 2030 2035
Load
Share of
PSP
65%
RPS
75%
RPS
100%
RPS by
2035
Load Share
of PSP
65%
RPS
75%
RPS
100%
RPS by
2035
Hybrid 479 0 100 123 815 105 158 180
Wind, Northern
CA 63 0 0 150 64 100 150 305
Wind, Wyoming 27 0 0 0 27 30 110 110
Geothermal 21 7 7 27 21 7 7 27
In all scenarios SVCE procures significantly less hybrid resources than its load share allocation of the 2021 PSP. In all but the 100% RPS by 2035 case it procured less than its load share allocation of geothermal. SVCE’s existing portfolio has relatively high levels of each resource type. To ensure portfolio diversity, reduce curtailment risk and ensure SVCE’s portfolio is achieving high CFE scores across all hours, wind resources add value to the portfolio while hybrids have increasingly diminishing value. Therefore, disproportionately more wind resources are selected to complement the existing hybrid and geothermal resources.
b. Preferred Conforming Portfolios
SVCE’s preferred conforming portfolio is the 65% RPS Conforming Portfolio. This portfolio maintains SVCE’s 100% goal of being 100% carbon free on an annual basis while balancing the costs and risks associated with long-term PPAs and continued hydro reliance. In addition to the rationale described below, SVCE selected this portfolio for the following reasons:
• It is consistent with the SVCE board approved RPS target • Reliability, resource adequacy, and grid integration requirements are still in flux and highly uncertain and may impact the value of additional RPS resources • The expansion of Direct Access could pose significant risk to SVCE if it procures large amounts of long-term resources beyond those necessary to meet existing mandates • Uncertainty around the IRP procurement track and on-going development risk impacts from the COVID-19 pandemic provide reason to be cautious about adoption of a portfolio which may be challenging to implement.

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16 i. RPS and GHG targets
Each of the portfolios assessed by SVCE met the selected RPS targets, which all meet or exceed the 60% RPS target by 2030, established in the RPS compliance guidelines. SVCE notes that for all cases, the stated RPS target used to identify the case is often exceeded due to the use of RPS resources to achieve the GHG-targets set. In the Preferred Conforming Scenario approximately 90% of the delivered RPS energy each year comes from long-term contracted resources, exceeding the 65% requirement.

All cases also exceeded SVCE’s 25 MMT GHG target. While the 75% RPS achieves minimally lower GHG-emissions in 2035 than the Preferred Conforming Plan, system emissions are higher in 2030.10 The 100% RPS plan achieves the lowest GHG-emissions in 2035, far exceeding SVCE’s target, but as discussed later in this section raises concerns for viability and diversity. It also had only marginally lower emissions than the Preferred Conforming Plan did in 2030. The earlier reduction in GHG-emissions found in the Preferred Plan is considered a positive attribute of the Preferred Conforming Plan, especially due to the uncertainty of system emissions later in the planning horizon. SVCE provides detailed results of the GHG emissions for all portfolios in Section III.c.

As noted above, SVCE is exploring the viability of achieving a “24x7” clean portfolio, in which its hourly load is met by clean resources. In reviewing the results of each portfolio, SVCE assessed the hourly Carbon Free Energy (“CFE”) score of the portfolio. The methodology for this calculation is noted in Section II above.

Of the three Portfolios, the Preferred Conforming Plan provided the best hourly distribution of carbon free energy due to the reliance on hydro power resources while simultaneously achieving the highest CFE score in 2030. Given virtually all of SVCE’s emissions come from use of system power, reducing its CFE score is one of the best ways SVCE can limit impact to DAC communities throughout the state. The Preferred Conforming Plan achieves 95% CFE score compared to 93% and 94% for the 75% RPS Conforming Case and 100% RPS Conforming Case, respectively. Figure 7 below provides a summary of the CFE results for each case and illustrates the benefit of hydro on reducing reliance on system power in the late evening and early morning hours.
10 In 2030 the 65% case emissions are approximately 40% lower due to assumed hydro power usage to achieve 100% carbon free energy on an annual basis. In 2035 the Preferred Conforming Scenario's emissions are less than

2.5% higher than in the 75% Conforming Scenario.

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17 Figure 7. Heat Map of SVCE Preferred and Conforming Portfolios CFE Scores ii. Ratepayer Impact
As an LSE operating in an environment where customers have choice, SVCE is focused on ensuring affordability for its customers. Each conforming plan was evaluated using the PowerSimm dispatch module, as described in Section II.b. above, to evaluate both portfolio cost and risk metrics. As described in Section III.e. below, SVCE found the Preferred Conforming Portfolio to be the least cost of the three filed Conforming Portfolios.
ne key metric in evaluation of the portfolios is the assumed “cost at risk”; a measurement of the probabilistic deviation from the mean which represents a tail probability. While the Preferred Conforming Portfolio didn’t have the lowest assessed value of this metric across portfolios, the expected cost at risk of all portfolios was low relative to the overall portfolio cost. SVCE maintains significant reserves to help cover unexpected cost fluctuations to minimize the impact of such events on ratepayer bills.

Additionally, SVCE believes that diversifying procurement with short and long-term contracts allows the LSE to right size the portfolio and better manage risks, whether from the market, load departure or regulatory uncertainty. The higher volume of short-term energy contracts in the Preferred Conforming portfolio, will help manage price and load forecast risks. SVCE expects the Preferred Conforming Portfolio will help ensure the organization can dynamically adjust to changing conditions and minimize impact to ratepayer bills over time.
iii. Reliability, Diversity and Grid Management
In considering the Conforming Portfolios evaluated, SVCE examined the potential risks each portfolio poses to both SVCE and the grid at large, including reliability, development and supply risks. In all 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 91% 92% 92% 89% 88% 90% 92% 96% 98% 98% 98% 98% 99% 99% 98% 97% 94% 88% 88% 87% 88% 89% 90% 91% 2 93% 93% 93% 93% 91% 90% 93% 96% 98% 98% 98% 98% 99% 99% 99% 99% 98% 90% 89% 88% 89% 90% 91% 92% 3 98% 98% 98% 98% 97% 95% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 95% 93% 94% 96% 98% 98% 99% 4 98% 99% 99% 99% 98% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 98% 96% 97% 98% 99% 99% 99% 5 99% 99% 99% 99% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 99% 97% 97% 99% 99% 99% 99% 6 97% 98% 98% 98% 98% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 99% 97% 98% 99% 98% 97% 98% 7 90% 91% 91% 91% 91% 94% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 99% 97% 94% 95% 95% 93% 90% 91% 8 85% 86% 86% 86% 84% 89% 96% 98% 99% 99% 100% 100% 100% 99% 99% 99% 97% 93% 93% 93% 92% 88% 86% 86% 9 82% 83% 83% 82% 80% 84% 93% 97% 100% 100% 100% 100% 100% 100% 99% 98% 95% 92% 92% 91% 90% 86% 85% 85% 10 94% 94% 95% 94% 92% 92% 98% 99% 100% 100% 100% 100% 100% 100% 100% 100% 94% 90% 90% 90% 91% 91% 92% 93% 11 89% 90% 90% 90% 90% 90% 94% 98% 99% 100% 100% 100% 100% 100% 100% 98% 87% 88% 87% 87% 87% 87% 88% 90% 12 85% 85% 85% 84% 85% 86% 88% 93% 93% 96% 97% 98% 97% 97% 97% 92% 86% 85% 84% 84% 84% 84% 84% 85% 1 87% 87% 86% 83% 82% 84% 87% 94% 97% 98% 98% 99% 99% 99% 98% 97% 91% 84% 84% 83% 83% 85% 85% 86% 2 88% 88% 88% 86% 84% 84% 88% 94% 97% 98% 99% 99% 99% 99% 99% 98% 96% 85% 84% 83% 84% 85% 86% 88% 3 96% 95% 95% 95% 92% 90% 97% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 92% 90% 91% 94% 96% 97% 97% 4 96% 97% 97% 97% 96% 96% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 97% 93% 95% 97% 97% 98% 98% 5 97% 97% 97% 97% 96% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 98% 95% 96% 98% 98% 98% 98% 6 93% 94% 94% 94% 95% 97% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 98% 95% 97% 98% 97% 95% 95% 7 86% 86% 86% 86% 86% 90% 97% 100% 100% 100% 100% 100% 100% 100% 100% 100% 99% 96% 93% 94% 94% 90% 87% 87% 8 80% 80% 81% 81% 79% 85% 94% 98% 99% 99% 100% 100% 100% 100% 100% 99% 97% 92% 91% 92% 90% 86% 82% 83% 9 77% 77% 77% 75% 74% 80% 91% 98% 100% 100% 100% 100% 100% 100% 100% 99% 95% 90% 91% 90% 88% 83% 81% 82% 10 90% 91% 91% 90% 87% 89% 96% 100% 100% 100% 100% 100% 100% 100% 100% 100% 94% 88% 87% 87% 88% 88% 89% 91% 11 85% 86% 85% 84% 84% 85% 91% 98% 100% 100% 100% 100% 100% 100% 100% 98% 85% 84% 84% 84% 83% 84% 84% 86% 12 79% 79% 78% 77% 77% 79% 83% 91% 94% 96% 97% 98% 98% 97% 97% 93% 82% 81% 80% 80% 79% 80% 79% 80% 1 89% 89% 88% 86% 85% 87% 90% 96% 98% 98% 99% 99% 99% 99% 98% 98% 93% 86% 86% 85% 85% 87% 87% 88% 2 91% 91% 91% 89% 87% 87% 91% 96% 98% 99% 99% 99% 100% 99% 99% 99% 97% 88% 87% 86% 86% 88% 89% 90% 3 97% 97% 97% 96% 94% 92% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 94% 92% 93% 95% 97% 98% 98% 4 98% 98% 98% 98% 97% 97% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 98% 95% 96% 98% 98% 98% 98% 5 98% 98% 98% 98% 97% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 99% 96% 97% 99% 99% 99% 99% 6 95% 95% 96% 95% 96% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 99% 96% 98% 99% 98% 96% 96% 7 88% 88% 88% 87% 87% 92% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 97% 95% 95% 95% 92% 89% 89% 8 83% 83% 83% 83% 81% 88% 96% 98% 99% 100% 100% 100% 100% 100% 100% 99% 98% 94% 94% 94% 93% 88% 84% 85% 9 80% 80% 80% 78% 77% 82% 93% 99% 100% 100% 100% 100% 100% 100% 100% 100% 97% 93% 93% 92% 90% 85% 84% 84% 10 93% 93% 93% 92% 89% 91% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 95% 90% 89% 89% 90% 90% 91% 92% 11 87% 88% 88% 87% 87% 88% 94% 99% 100% 100% 100% 100% 100% 100% 100% 99% 87% 86% 85% 85% 85% 86% 86% 88% 12 81% 80% 80% 79% 80% 81% 85% 93% 95% 97% 98% 98% 98% 98% 98% 95% 83% 83% 82% 82% 81% 82% 81% 82% Month Hour
Preferred Conforming Plan
75% RPS Conforming Plan
100% RPS by 2035 Conforming Plan Month Month
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18 Conforming Portfolios, SVCE meets its reliability obligations through the use of both long-term and short-term contracts. As described in Section III.f below, SVCE relies on less than its load share allocation of the existing fossil fleet to meet its RA requirements in any year. Additionally, the reliance on existing resources to meet RA needs is relatively consistent across Conforming Portfolios. SVCE analyzed the Preferred Conforming Portfolio using both the 30 MMT and 25 MMT ELCC assumptions and found that the 25 MMT ELCC assumptions required slightly less system capacity to meet its reliability needs. SVCE therefore does not expect this portfolio to have meaningfully different reliability regardless of if other LSEs procure in a manner consistent with the 25 or 30 MMT scenarios. Though SVCE uses short-term existing fossil resources as a proxy for meeting its RA requirements for simplicity, in practice these RA only contracts will likely come from a variety of resources.

A key component of the evaluation of the Conforming Portfolios was ensuring a reasonable balance of development risk for new resources and supply risk for existing resources such as hydro power. Relative to its prior IRP, SVCE’s Preferred Conforming Portfolio relies on less existing resources to meet its energy needs and as described in Section II of this narrative worked to ensure that all reliance on existing resources was reasonable given both what SVCE has historically contracted and expected future market conditions. The COVID-19 pandemic and resulting supply chain issues has highlighted that over-reliance on new resources brings its own set of risks, including delays. In addition to balancing short and long-term contracts, over-reliance on specific resource types can also provide challenges. As an example, recent increases in lithium-ion prices have triggered requests for repricing of contracts. SVCE chose its Preferred Conforming Plan in large part because it appears to most reasonably balance the portfolio’s reliance on new resources while providing energy from a diverse mix of resource types.

As a CCA, SVCE has limited ability to support the resiliency of the bulk transmission system, but through the efforts of its programs has and will continue to work to enhance both grid resiliency and demand-side energy management. SVCE used the same demand side modifiers in all scenarios and while demand response was a candidate resource it was not selected in any portfolio. Therefore, these resources did not factor into selection of SVCE’s preferred portfolio selection. SVCE is actively developing internal load forecasts for load modifiers specific to its service territory which it hopes to utilize in the next IRP cycle and may include sensitivities to assess the impact of various load modifier penetrations on the supply side portfolio and distribution grid. Regardless of what resources the supply-side portfolio ultimately adopts, SVCE will remain committed to supporting the resiliency and affordability of the electricity grid as it advocates for electrification. SVCE describes these efforts in more detail in Section IV below.
c. GHG Emissions Results
All of SVCE’s conforming portfolios exceed its assigned GHG-benchmarks under the 25 MMT version of the CSP. SVCE did not use a custom hourly load shape or user-specified production profiles in the CSP calculator but did adjust the portion of C&I load to reflect its actual customer class shares. Below SVCE provides the GHG Emissions results for its portfolios using both the 25 MMT and 30 MMT versions of the CSP tool.

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19 Table 6: Preferred Conforming Portfolio GHG Emissions, 25 MMT Scenario Table 7: 75% RPS Conforming Portfolio GHG Emissions, 25 MMT Scenario Table 8: 100% RPS by 2035 Conforming Portfolio GHG Emissions, 25 MMT Scenario Table 9: Preferred Conforming Portfolio GHG Emissions, 30 MMT Scenario Unit 2024 2026 2030 2035
SVCE Target MMt/yr 0.412 0.334
CO2 MMt/yr 0.09 0.23 0.261 0.330
PM2.5 tonnes/yr 3 7 10 12
SO2tonnes/yr 1 2 2 2
NOx tonnes/yr 27 31 33 25
Unit 2024 2026 2030 2035
SVCE Target MMt/yr 0.412 0.334
CO2 MMt/yr 0.09 0.23 0.380 0.332
PM2.5 tonnes/yr 3 7 13 11
SO2
tonnes/yr 1 2 2 2
NOx tonnes/yr 27 31 37 25
Unit 2024 2026 2030 2035
SVCE Target MMt/yr 0.412 0.334
CO2 MMt/yr 0.09 0.23 0.243 0.268
PM2.5 tonnes/yr 3 7 8 8
SO2tonnes/yr 1 2 2 1
NOx tonnes/yr 27 31 30 21
Unit 2024 2026 2030 2035
SVCE Target MMt/yr 0.546 0.418
CO2 MMt/yr 0.10 0.23 0.217 0.295
PM2.5 tonnes/yr 4 8 9 13
SO2tonnes/yr 1 2 2 2
NOx tonnes/yr 28 32 32 28
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20 Table 10: 75% RPS Conforming Portfolio GHG Emissions, 30 MMT Scenario Table 11: 100% RPS by 2035 Conforming Portfolio GHG Emissions, 30 MMT Scenario d. Local Air Pollutant Minimization and Disadvantaged Communities i. Local Air Pollutants
SVCE provides the results of the air pollutants for each of its Conforming Portfolios as calculated in both the 25 MMT and 30 MMT versions of the CSP in Table 12 and 13 below. The majority of SVCE pollutants come from system power, including the CHP attributable emissions from the LSE share of CAISO wide system emissions in the calculator. SVCE’s portfolio also includes small shares of biogas and biomass emissions which come solely from SVCE’s Voluntary Allocation, which the organization is using to help meet its RPS goals in a cost-effective manner. As noted in Section III.b above, SVCE selected its Preferred Conforming Portfolio in part because it best fits SVCE’s load to its clean energy supply, thereby reducing reliance on system power.

Table 12: Local Air Pollutant Results, 25 MMT Scenario
Table 13: Local Air Pollutant Results, 30 MMT Scenario
Unit 2024 2026 2030 2035
SVCE Target MMt/yr 0.546 0.418
CO2 MMt/yr 0.10 0.23 0.326 0.293
PM2.5 tonnes/yr 4 8 13 13
SO2tonnes/yr 1 2 2 2
NOx tonnes/yr 28 32 37 28
Unit 2024 2026 2030 2035
SVCE Target MMt/yr 0.546 0.418
CO2 MMt/yr 0.10 0.23 0.184 0.223
PM2.5 tonnes/yr 4 8 7 10
SO2
tonnes/yr 1 2 2 1
NOx tonnes/yr 28 32 29 24
Pollutant Unit 2024 2026 2030 2035 2024 2026 2030 2035 2024 2026 2030 2035 PM 2.5 Tonnes/yr 3 7 10 12 3 7 13 11 3 7 8 8
SO2 Tonnes/yr 1 2 2 2 1 2 2 2 1 2 2 1
NOx Tonnes/yr 27 31 33 25 27 31 37 25 27 31 30 21
Preferred Conforming Case
65% RPS by 2030
Conforming Case
75% RPS by 2030
Conforming Case
100% RPS by 2035
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21 ii. Focus on Disadvantaged Communities
In order to identify state-defined disadvantaged communities (DACs) that are located within its service territory, SVCE used CalEnviroScreen 4.0 to identify the top 25% of impacted census tracts on a statewide basis. This analysis indicates that SVCE serves 4,260 customers residing in 3 census tracts identified as DACs: 6085512604, 6085512603, and 6085512602. The map below shows each of these census tracts in red. The population of these DAC areas is listed as 11,924 per 2019 ACS population estimates, which is estimated to comprise approximately 2% of the population of SVCE service territory.

Figure 8. Map of SVCE DAC Census Tracts11
SVCE’s primary strategy for reducing emissions and contributing to the economic development of DACs in its procurement practices is the aggressive procurement of zero-emissions renewable resources.

When selecting green power projects, SVCE considers whether proposed facilities are located within 11 Cal EnviroScreen 4.0 Mapping Tool, https://oehha.ca.gov/calenviroscreen/maps-data Pollutant Unit 2024 2026 2030 2035 2024 2026 2030 2035 2024 2026 2030 2035 PM 2.5 Tonnes/yr 4 8 9 13 4 8 13 13 4 8 7 10
SO2 Tonnes/yr 1 2 2 2 1 2 2 2 1 2 2 1
NOx Tonnes/yr 28 32 32 28 28 32 37 28 28 32 29 24
Preferred Conforming Case
65% RPS by 2030
Conforming Case
75% RPS by 2030
Conforming Case
100% RPS by 2035
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22 DACs or otherwise contribute to DAC economic development (for instance, by increasing employment opportunities for DAC residents). Currently, SVCE has signed one PPA for a solar plus storage facility within a DAC census tract: RE Slate in Kings County.

SVCE does not have any energy contracts with gas generators located in or next to DACs. SVCE does not have any energy contracts with renewable generation that may have local emissions impacts (such as biogas or biomass) located within or next to DACs12. Portfolios submitted as part of this 2022 IRP filing all ensure that SVCE meets 100% of its annual energy obligation on an annual basis. As discussed in Section II.b above, SVCE has also calculated its Carbon Free Energy score (“CFE”) which shows SVCE will rely less on system power over time. SVCE adopted the Preferred System Plan in part due to its favorable CFE scores relative to other Conforming Portfolios, which it believes will help minimize local air pollutants in DACs state-wide.

SVCE’s existing and future RA contracts are primarily from natural gas units which may be located in or near a DAC area. To the extent compatible with RA program requirements and cost-effectiveness, SVCE prefers capacity contracts from generators that do not have emissions impacts on DACs such as those from Distributed Energy Resources (DER), renewable and carbon-free resources. To this end, SVCE has been aggressively signing new PPAs which provide both energy and capacity to SVCE to help meet its RA requirements.

As discussed more fully in Section IV.b below, SVCE's board of directors is made up of elected officials representing each of the thirteen member agencies in the SVCE service area. Decisions related to SVCE's procurement and strategic planning are made by these elected officials in the interest of all of their constituents. Throughout the development of this IRP, SVCE staff met with the Board to discuss matters related to long-term planning for both SVCE and the system at large. SVCE staff utilized feedback from the Board in development of this IRP, which was ultimately reviewed and approved by the Board of Directors on October 12, 2022.
e. Cost and Rate Analysis
As a California CCA operating in an in environment where customers have choice, whether it’s returning to the incumbent utility, participating in direct access or bypassing SVCE with behind-the-meter solar, SVCE is acutely aware of the need to manage cost and maintain competitive rates. SVCE’s value proposition since its inception has been to provide affordable and annually carbon-free product offerings to its customers. GreenStart is SVCE’s default product offering, comprised of a mix of RPS and other carbon-free resources, which since inception has been offered at a discount to PG E’s bundled generation rates of three percent on average. GreenPrime is SVCE’s opt-up product which is made up of 100% RPS eligible resources and is offered at a slight premium to GreenStart. 12 In 2022, SVCE opted to take a portion of its Voluntary Allocation per the rules in R.18-07-003. SVCE is not aware of the location of all bio fueled resources in that portfolio.

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23 Starting in 2020, and again in 2022, SVCE has offered bill credits to CARE/FERA (income qualified) customers. 10% of SVCE’s residential customers are CARE/FERA, and these bill credit amounts from SVCE represent an additional generation rate discount of approximately 10%. SVCE describes its CARE/FERA program in more detail in section IV. b. below. SVCE will continue to pursue affordability to end users along with building a robust green portfolio aligned with SVCE mission.

Fundamental to achieving SVCE’s product and rate objectives is SVCE’s ability to procure cost-effective electric supply resources and manage the cost and risk associated with its load and supply portfolio.

This starts with the proper evaluation and selection of resources acquired to meet SVCE’s long-term renewable needs, which make up a large portion of the supply portfolio. In evaluating the addition of new or existing resources to the SVCE generation portfolio, SVCE utilizes both quantitative and qualitative metrics. SVCE evaluates the resource value as determined by its net energy (including congestion), ancillary service (A/S), resource adequacy (RA) and RPS/REC value and compares it to the contract cost. In addition, SVCE assigns qualitative metrics including a resource’s generation profile, location, workforce development and technology type. SVCE then measures the resource’s benefits against its costs to determine whether it is cost-effective and to assess an implied REC cost.

After a resource has been analyzed to be cost-effective, it is then incorporated and modeled with SVCE’s existing portfolio to determine the overall portfolio’s return/risk ratio. The return/risk ratio analysis will account for portfolio dynamics including:
• Resource performance against SVCE’s hourly load obligation; • Basis locational price differential between the resource and SVCE DLAP; and • Variability in production from resources and forward and spot price uncertainty Resources that increase the portfolio’s gross margin net present value (NPV) while decreasing the gross margin at risk (as measured by the mean gross margin NPV minus the fifth percentile probability [P5] gross margin NPV) are considered resources for further consideration.

Aside from the process describe above, SVCE also assesses the compliance and strategic value a resource may provide. Resources are evaluated on their ability to:
• Meet California mandated procurement requirements;
• Meet SVCE’s vision of a true carbon-free portfolio where the resource can provide clean energy on a 24x7 basis or in the hours where carbon emissions are the highest; • Provide local benefits to its member communities;
• Mitigate portfolio concentration risk (price, technology, counterparty and/or location); and • Provide for overall grid reliability.

SVCE is subject to significant cost volatility and uncertainty in meeting its energy load obligations within the CAIS . To manage this cost, SVCE’s governing board has adopted an Energy Risk Management Policy. Included in the Policy are tolerance bands for minimum and maximum amount of load to be met Item 3
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24 through forward purchases of fixed-price energy. These transactions are carried out with Board-approved counterparties and for the most part are sourced through generic resources priced at the PG&E EZ-Gen Hub or NP15 delivery point.

Table 13. SVCE Board Approved Energy Risk Management Tolerance Bands (Fixed Price Supply as a % of Load)
Period Minimum Maximum
Current Balance of Year 80% 110%
Year 2 70% 90%
Year 3 55% 80%
Year 4 50% 80%
Year 5 50% 80%
Taking a portfolio approach of varying new and existing projects, technology, location, contract tenor, counterparties and contract pricing structures in its pursuit of long-term RPS resources along with having a rigorous energy risk management program to manage load obligations and supply portfolio cost and risk ensures that SVCE can meet its near and long-term cost, rate, and financial objectives.

Over time short-term index plus REC and/or carbon-free resources will be replaced with less expensive and more valuable long-term PPAs delivering energy, RECs, carbon-free, and RA attributes.

In development of this 2022 IRP, the SVCE team completed cost analysis for all three Conforming Portfolios. SVCE has chosen to submit the 65% RPS case as the Preferred Conforming portfolio in part because it is the least cost of the three scenarios.

Given the potential differential between model assumptions and actual market conditions, SVCE will continue to evaluate offers as solicitations occur in the future. In signing actual contracts, SVCE will balance both clean energy attributes with affordability measures to ensure cost effectiveness for the portfolio in order to maintain affordability for our customer base.

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25 Figure 9. SVCE Expected NPV Cost for Conforming Portfolios f. System Reliability Analysis
As part of its capacity expansion and modeling exercise, SVCE enforced a resource adequacy constraint aligned with the IRP ELCC assumptions in the RDT to ensure that all portfolios contribute fairly to total system reliability. As noted in Section III.a.ii above, SVCE “right sized” short-term RA contracts to meet the RA needs of the portfolio each year. For this reason, SVCE achieves a net zero position in all Conforming Plans. The results of each Conforming Portfolio’s Load and Resource Table by Contract Status are below.

Table 15: 65% RPS Resource Adequacy Results
2024 2026 2030 2035
SVCE Marginal Reliability
Need (MW)
Online
Development
Under Review
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26 Planned, Existing
Planned, New
BTM PV
Total RA Supply
Net Position
Table 16: 75% RPS Resource Adequacy results
2024 2026 2030 2035
SVCE Marginal Reliability
Need (MW)
Online
Development
Under Review
Planned, Existing
Planned, New
BTM PV
Total RA Supply
Net Position
Table 17: 100% RPS by 2035 Case
2024 2026 2030 2035
SVCE Marginal Reliability
Need (MW)
Online
In Development
Under Review
Planned, Existing
Planned, New
BTM PV
Total RA Supply
Net Position
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27 Figure 10 below, compares what share of SVCE’s total RA needs are met by each contract category. Due to the timing of the build, there are no differences between the Portfolios for years 2024 and 2026.

While SVCE’s RA requirements are met by proportionally more existing resources in later years, SVCE never relies on more than its load share allocation of the existing fossil fleet to meet its RA requirements. Given the recent procurement orders and heightened attention on reliability from both regulators and the legislature, SVCE expects the RA market to have sufficient excess capacity to allow for this level of short-term market purchases.

Figure 10: Comparison of RA Portfolios by Contract Category As noted in Section II.b.i above, SVCE also assessed each portfolio’s contribution to RA under a 24-hour “slice of day” framework, as adopted in D.22-06-050. To do this analysis SVCE input the results of each portfolio into its internal slice of day RA modeling tool. This tool is intended to assess SVCE’s portfolio under the slice of day framework. A final decision on the accounting rules for resources and the planning reserve margin in the slice of day framework is not yet finalized in the RA proceeding, so SVCE used estimated exceedance and PRM values based on presentations and discussions in the RA Workshops held between July and October of 2022.
[Staff to add analysis here]
g. High Electrification Planning
To assess the Impact of a higher electrification load, SVCE re-ran its preferred portfolio assumptions utilizing its load share allocation of the 2021 CEC Additional Transportation Electrification forecast as provided In the LSE Filing Requirements RESOLVE package posted on the CPUC's 2022 IRP Events and Item 3
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28 Materials page on June 29, 2022. As a proxy to determine SVCE's share of the higher load, staff first determined its load share of the baseline assumptions by calculating the share of its assigned retail sales as part of the RESOLVE total retail sales. This value was then multiplied by the high electrification retail sales to find SVCE's share for this sensitivity. SVCE then calculated its peak obligation by multiplying it’s assigned peak load share by the CAISO peak in the RESOLVE Inputs. Effectively, SVCE found that to meet the GHG-target of the high electrification scenario for its Preferred Conforming Plan, it would need the 2035 resource mix utilized in the 75% RPS Conforming plan plus an additional 10 MW of geothermal to hit the 15% annual energy target. The results of the below scenario exceed the 25 MMT target and provide a 2035 RPS portfolio of 76%.

Table 18: SVCE High Electrification Results Build
Resource Type MWs Annual GWh 2035
GHG
target
Transmission
Zone13
Substation/Bus Alternative
location
Note
Hybrid
[solar, battery]
[105, 53] 302 Both N/A N/A N/A N/A
Wind, N. CA 150 219 Both N/A N/A N/A N/A
Wind, Wyoming 110 491 Both N/A N/A N/A N/A
Geothermal 17 133 Both N/A N/A N/A N/A
In this scenario SVCE may rely more heavily on existing system resources to meet RA. However, as described in Section IV of this document, SVCE’s Programs team actively pursues electrification as a means to achieve economy-wide emissions reductions in its service area. Many of SVCE’s programs aim to ensure that the timing of this demand will minimize the impact of infrastructure needs and peak demand increases. While SVCE sees the value in engaging LSEs in development of a high electrification portfolio for TPP needs, it does not necessarily believe this load and peak demand scenario will come to fruition by 2035.
h. Existing Resource Planning
In developing its inputs and assumptions, SVCE worked to create a defendable balance of resources utilizing existing and new resources based on its experience transacting in the market and in procuring new resources. In all portfolios, the majority of SVCE’s energy and capacity needs were met by resources already under contract or added into the portfolio as planned new resources. However, it is an important part of SVCE’s risk management strategy to balance its portfolio with a mix of new and existing resources as well as short and long-term contracts.

13 SVCE’s did not model resources to explicit transmission zones. See transmission planning Section III.n, for further discussion.

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29 While the majority of each portfolio was comprised of either new planned resources or those already under contract by SVCE, several existing resources were included either as candidate resources or forced into the portfolio as an input assumption. Specifically, SVCE included generic existing RA contracts, Index + contracts assumed to rely on existing RPS and GHG-free resources, and allocations for hydro, nuclear and CAM/CPE resources from its incumbent IOU, PG&E.

Relative to its 2020 IRP, SVCE assumes lower reliance on existing thermal and hydro for RA purposes. In both its 2020 and 2022 IRP plans, SVCE assumes a portion of its energy and capacity needs will be met with hydro imports from the Pacific Northwest (PNW) meeting the CP C’s contracting and scheduling requirements for import RA in addition to seeking in-state existing hydro resources with energy and RA qualifying capacity. In 2022, SVCE decreased the size of this type of resource by 40% relative to its 2020 IRP assumptions. As noted in Section III.a.i above, SVCE does assume short-term RA can be purchased to fill resource adequacy needs. In its 2020 IRP, SVCE expected to need up to 565 MW of generic RA capacity to meet its RA obligations. In this IRP, SVCE never relies on more than 500 MW of generic RA capacity in a given year, which is less than SVCE’s load share of the existing fossil fleet. The Preferred Conforming Plan averages a need of approximately 375 MW across the planning horizon.

In this IRP, SVCE meets approximately 10% of its load each year with index + RPS short-term contracts across all portfolios. This strategy of procuring short-term resources is consistent with SVCE’s Board directive to diversify procurement tenor to manage the risk of losing load to Direct Access and/or bypass. SVCE believes the resources to meet this procurement objective may be sourced from other LSEs portfolios and/or merchant renewable resources. In the 65% RPS case, SVCE meets an additional 15% of its needs with index + GHG-free hydro resources after 2030. This is consistent with existing contracts SVCE has secured since its inception and will likely be sourced from in-state resources either as firm or non-firm resources. Relative to its 2020 IRP, SVCE’s 2022 Preferred Plan relies on roughly 50% lower index + transaction volumes to meet its energy and GHG-free targets in 2030.

To estimate hydro and nuclear allocations SVCE relied heavily on historic allocation data. The nuclear allocation from the Diablo Canyon Power Plant took recent historical allocations and scaled them down based on the originally expected retirement dates for each unit, assuming consistent output over the year.

As described in the RDTv3 User Guide, SVCE determined it CAM allocations using the CAM year ahead list for both DR and non-DR resources. Per guidance, SVCE assumed this volume would stay static over the entire planning horizon.
i. Hydro Generation Risk Management
SVCE currently relies on a significant amount of purchases of GHG-free energy from hydro generators to maintain its Board-approved goal of being carbon-free on an annual basis. SVCE manages its hydrological risk by contracting with both Pacific Northwest and California suppliers. In addition, SVCE attempts to execute firm contracts to provide certainty on hydro deliveries from suppliers who will only sell excess resources versus a unit contingent contract that is subject to the vagaries of hydrological conditions. SVCE is able to mitigate its hydrological delivery risk by diversifying the regions from which it procures large hydro. In addition, SVCE is inserting language in contracts that specify that the supplier provide hydrological statistics (storage levels and acre/ft conversions) at certain times of the year in Item 3
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30 order for SVCE to better forecast future deliveries. For the portion of hydro supply provided from non-firm resources, SVCE will assess the variability of the resources under various precipitation and hydrological conditions and will rebalance its portfolio with firm carbon-free and/or RPS resources to meet its 100% carbon-free annual goal.

SVCE contracts for hydro resources through a mix of counterparties and for varying terms to manage risk associated with counterparty default on hydro resources. SVCE’s goal is to secure a large portion of its large hydro needs under contract of three- to five-year tenures; however, it continues to explore longer-term contracting for small hydro facilities.

Since its 2020 IRP, SVCE has actively worked to reduce its reliance on short-term purchases of GHG-free energy through its growing portfolio of long-term contracts for renewable resources. This portfolio includes both geothermal resources that can deliver baseload generation and long-duration storage which can effectively utilize renewable energy during peak hours. Further, SVCE is exploring long-term contracts for hydro resources. In 2018, SVCE was awarded a small allocation of large hydro from the Central Valley Project (CVP) as provided for under Western Area Power Administration’s 2025 Power Marketing Plan. The SVCE Board approved participation in the Western Base Resource (WBR) contract in late 2020. The contract is 30 years in term with deliveries starting in 2025, structured as a run-of-river for which SVCE will be responsible for its share of project cost and receive its share of all energy and capacity benefits. As a WBR contract customer, SVCE will have the ability to increase its participation share through long and short-term lay-offs from other WBR participants. The WBR contract has an option to terminate in July 2024 before taking delivery. SVCE staff will determine at that time its ultimate participation in the contract and therefore did not include the resource in its RDT.

Figure 11 below compares the amount of hydro generation in each Conforming Portfolio against SVCE’s load share allocation of the 2021 Preferred System Plan.

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31 Figure 11. Comparison of hydro generation for each portfolio and SVCE’s load share allocation of the 2021 Preferred System Plan
As the figure shows, SVCE would rely on less than its load share allocation in both the 75% RPS and 100% by 2035 RPS Portfolios. In the 65% RPS case SVCE would need roughly 75% more than its load share allocation. Exploring the trade-offs between reliance on hydro and RPS resources was a fundamental driver of why SVCE selected the RPS scenarios it did. As described in Section III.b, SVCE found the 65% RPS case to be the Preferred Conforming Portfolio in part because it provides a reasonable balance of reliance on new resources and existing hydro power to meet its annual carbon-free energy goals. j. Long-Duration Storage Planning
SVCE included long-duration storage as a candidate resource in the modeling exercise to develop conforming portfolios this cycle. Across all scenarios, long-duration storage was not selected. As noted in Section IV below, SVCE has contracted long-duration storage to meet its requirements under D.21-06- 035.

SVCE continues to assess the value of long-duration storage as part of its portfolio planning process and included it as a candidate resource in its capacity expansion modeling. While no LDS resources were selected as part of the planning process, SVCE will nonetheless continue to evaluate LDS resources including non-lithium-ion technologies and emerging technologies in its all-source solicitations.

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32 k. Clean Firm Power Planning
SVCE currently satisfies approximately 12% of its energy needs with geothermal resources. Recognizing the benefits of diversification and the need for clean, firm resources SVCE has set a target of meeting approximately 15% of its energy needs with geothermal over the IRP planning horizon. These geothermal resources will help SVCE meet its decarbonization and electrification goals by providing a 24x7 source of carbon-free energy. SVCE finds geothermal to be a good substitute to capacity from natural gas resources and Diablo Canyon. It is a proven technology and is not susceptible to grid integration issues such as those with intermittent resources.

SVCE first executed geothermal contracts in 2019 which were selected through a competitive solicitation process which evaluated offers to assess an expected levelized net benefit value under various market and regulatory conditions. While the geothermal resources were offered in at significantly higher PPA cost on a per-MWh basis versus the solar plus storage and wind projects, the expected value and therefore net benefit was deemed competitive and cost-effective.

As part of its 2022 IRP planning efforts, SVCE Included both geothermal and biomass as candidate resources. By default, the ARS capacity expansion model did not select either resource. However, due to SVCE’s 15% geothermal target, additional geothermal appears in each Conforming plan. Based on market surveys and previous offers, SVCE believes it can sign additional geothermal using a mix of both new and existing geothermal resources.

SVCE continues to view clean firm resources as a necessary component of a clean, reliable electricity system, but cautions the Commission for including similar resource carve-outs in future procurement orders due to the impact on affordability for customers. These concerns are discussed in more detail in Section IV.c below.
l. Out-of-State Wind Planning
As with other resources selected in the 2021 Preferred System Plan, SVCE modeled out-of-state (OOS) wind as a candidate resource for its 2022 IRP portfolios. Across all Conforming plans, out of state wind was selected. To ensure alignment with the IRP modeling assumptions, SVCE created candidate resources for Wyoming, New Mexico and Pacific Northwest Wind. In all instances Wyoming wind was found to be the preferred resource, however, SVCE notes that resources with similar profiles and valuation may be found in other states. This resource is likely found valuable due to its high-capacity factor, relative to in-state wind, and ability to complement SVCE’s extensive solar and storage portfolio.

SVCE has had bilateral discussions with developers for OOS wind resources however transmission and cost continue to be a major barrier. Such opportunities are evaluated alongside others and are not penalized for being out-of-state as long as they can deliver to the CAISO. The viability of the project given the development stage of the transmission project and the ability to acquire import capacity rights is factored into the evaluation especially if the project is needed to meet specific procurement targets such as SB 350. Due to the long lead time needed to build out transmission for OOS wind and the Item 3
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33 uncertainty around transmission development in California, OOS wind is not being considered to meet any of SVCE’s MTR procurement requirements. SVCE discusses its evaluation of transmission availability more thoroughly in Section III.n below.

Despite potential barriers, given the potential cost effectiveness and diversity benefit of OOS wind to the CAISO system, SVCE supports the inclusion of OOS wind in the 2022-2023 IRP PSP as a means to help assess the pathway toward building sufficient transmission to allow these resources in the CAIS ’s Transmission Planning Process (“TPP”).
m. Offshore Wind Planning
In its 2022 modeling for the IRP SVCE Included offshore wind as a candidate resource, utilizing the cost and wind profiles provided by the CPUC in the RESOLVE and CSP tools. The ARS capacity expansion tool did not select this resource in any of the scenarios modeled, likely due to its cost relative to out of state wind resources which provide many of the same attributes. In addition to modeling results, SVCE staff also considers offshore wind in California to have significant development risk which makes it an unfavorable resource for the portfolio.

In anticipation of a potential procurement order for offshore wind, in part to meet the planning goals of AB 525, SVCE did a scenario analysis of the Conforming Preferred Portfolio which included SVCE’s load share allocation of the IRP offshore wind build starting in 2032. This is equivalent to approximately 81 MW. SVCE does not endorse the use of load share allocation for procurement orders, as discussed in Section IV.c below, but used this as a proxy given LSEs open positions are unknown and it is unclear what basis an offshore wind order would be justified (i.e., GHG or RA compliance) should it be ordered by the Commission.

In this scenario, the energy and capacity from the offshore wind would replace the need for all incremental new capacity, other than geothermal which would be maintained to achieve SVCE’s internal target of having 15% of annual energy met by geothermal. Even with the removal of all other new resources, SVCE would expect to be “long” RPS and GHG-free attributes in this scenario.

SVCE did not explicitly test the other Conforming Portfolios with the above offshore wind allocation.

However, it is likely that the 2030 RPS build would be at least partially stranded in the event SVCE was forced to procure its load share allocation of such an offshore wind order. This regulatory uncertainty played a role in the decision to not adopt these portfolios as preferred this cycle.

Should the Commission order offshore wind, it would likely have significant impact on LSEs actual procurement activities going forward. Given the risk of delay or failure of emerging technologies such as offshore wind, SVCE encourages the Commission to carefully consider how to ensure LSEs collectively balance ongoing procurement of both proven and emerging technologies to manage both risks and help ensure affordability for California ratepayers.

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34 n. Transmission Planning
SVCE summarizes known transmission upgrades for its resources under contract in Table 19 below.

Table 19. New SVCE Resource Location Information. SVCE has executed contracts with these resources.

Project
Name Resource Type Location
Queue
Position
Station or
Transmission
Line
Interconnectio
n Agreement?
Known
Transmission
Upgrades
RE Slate Solar + Storage Kings County, CA 1158
Mustang
Switching
Station 230kV Yes
Completed
Ormat Geothermal
Mono County,
CA 315
115 kV bus at
SCE Control
Substation Yes
Rabbit-brush Solar + Storage Kern County, CA 1215
Whirlwind
Substation
230kV Yes
Completed
Yellow Pine Solar + Storage Clark County, NV 1341
GridLiance
Trout Canyon
230 kV
substation on
the Pahrump
Sloan Canyon
230 kV line Yes
Network
Upgrades
expected to be
completed by
the end of 2022
Aratina Solar + Storage Kern County, CA 1604
Kramer
Substation 230
kV Yes
Casa Diablo
IV Geothermal
Mono County,
CA
WDAT-315Casa Diablo
Substation
Yes Completed
Angela Solar + Storage
Tulare County,
CA 1443
Olive
Switching
Station
Yes Network
upgrade
expected by Q2,
2023
Atlas Solar
La Paz County,
AZ 1402
Cielo Azul 500
kV Switch
Station Yes
Ten West Link
Transmission
Project is
expected to be
in service by Q4
2023
Victory Pass Solar + Storage
Riverside
County, CA 1200
Red Bluff
Substation
Yes Network
upgrade
expected by
9/30/2023
San Luis
West Solar + Storage
Fresno County,
CA 1389
Gates
Substation
Yes Network
upgrade and
interconnection
facilities
expectedfacilitie
s expected by
12/31/2023 and
12/31/2024
respectively.

AES
Mountain
View Wind
Riverside
County, CA
Mount Wind
Substation
115 kV
Yes It is a repower
project. No new
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35 transmission
facilities are
required
Coso Geothermal Inyo County, CA
Yes Existing
generating
facilities. No
new
transmission or
interconnection
facilities are
required
Cameron
Crest Wind Kern County, CA
Yes Existing
generating
facilities. No
new
transmission or
interconnection
facilities are
required
Fish Lake
(OME) Geothermal
Esmeralda
County, NV
Expected
11/1/2022
Ormat
Geothermal
Portfolio Geothermal

NV & CA
Counties To be
determined
NV Energy
Silver Peak
Substation No
Each Conforming Portfolio includes new solar and storage hybrid, Northern California wind, Wyoming wind, and geothermal resources modeled as planned backfill PPAs but not yet under contract. SVCE’s only location requirement for these resources is that they must qualify as PCC1 resources for RPS compliance purposes, meaning they have the first point of interconnection with a California balancing authority. ltimately, SVCE’s procurement activities will be driven by the results of RF s which may or may not include resources for any specific location SVCE could have modelled in this IRP. As such, SVCE believes it is false precision to provide specific locations for its resources. Nonetheless, SVCE did assess the reasonableness of its Conforming Portfolios. To do this, it followed the Preferred System Plan (PSP) distribution of solar/storage hybrid, Northern California wind, Wyoming wind, and geothermal resources. This spreads the resources in many transmission zones throughout California and CAISO border.

For generic new resources, SVCE used multiple sources of information on transmission upgrades, interconnection, and resource planning to assess their viability. For instance, the Northern California wind is a proxy for generic wind resources in Northern California, Solano, and the Carrizo area. In its 2021-2022 Transmission Plan, the CAISO approved a new 500/230 kV substation (Collinsville) in Solano County creating access to wind resources.14 The Collinsville project is expected to be highly effective in addressing several deliverability constraints15 to facilitate full capacity deliverability of the Solano area 14 CAISO 2021-2022 Transmission Plan, March 17, 2022, p. iv. 15 Cayetano-North Dublin 230 kV line, Lone Tree-USWP-JRW-Cayetano 230 kV line, and Las Positas-Newark 230 kV line, as included in CAISO 2021-2022 Transmission Plan, March 17, 2022, p.193.

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36 wind generation. The Commission’s Modeling Assumptions also confirm this for the CAIS 2022-2023 Transmission Planning Process (TPP).16 Therefore, the base portfolio provided by the Commission for the CAISO 2022-2023 TPP assume 305 MW, 272 MW, and 287 MW of wind resources in the Northern California, Solano, and Carrizo resource zones, respectively, as they can likely be accommodated on the existing and approved CAISO transmission.17 The High Electrification Sensitivity Portfolio for the 2022- 2023 TPP includes an even higher amount of wind resources in the Northern California and Solano zones. Given this information, SVCE assumes that its procurement of Northern California wind resources in 2030-2035 as outlined in the Preferred Portfolio would not be expected to trigger any transmission delivery network upgrades (DNU).

Wyoming wind is essentially a proxy for out-of-state wind resources that would be delivered to the CAISO border. SVCE has not assumed any additional transmission upgrades within the CAISO grid that would be triggered by the out-of-state resources to deliver them to the load centers.

The base portfolio provided by the Commission for the CAISO 2022-2023 TPP assume 79 MW, 440 MW, and 600 MW of geothermal resources in the Solano, Southern Nevada, and Greater Imperial resource zones, respectively. 18 The High Electrification Sensitivity Portfolio for the 2022-2023 TPP includes the identical amount of geothermal resources in Solano and Southern Nevada, and a higher amount in the Greater Imperial resource zones.19 Although the full buildout of this geothermal portfolio may trigger additional policy-driven transmission in the 2022-2023 TPP, the CAISO Transmission capability estimates for CP C’s resource planning process indicate that the existing CAIS transmission has adequate buffer to accommodate a significant portion of this geothermal portfolio. For instance, Southern Nevada can accommodate 300 MW of FCDS resources on the existing transmission.20 Therefore, SVCE has assumed the 7 MW of geothermal procurement by 2030, which is significantly lower than its load ratio of the system-wide geothermal buildout, can be accommodated on the existing and CAISO-approved transmission and would not trigger any additional DNUs or related transmission costs. 16 CPUC staff assumed two upgrades identified in the draft report could alleviate the exceedance on the Northern California – Cortina – Vaca-Dixon Line Constraint. These upgrades are the CAISO-approved Delevan-Cortina 230 kV line reconducting costing $18 - $35 million and the proposed new Collinsville 500 kV substation costing $475 -675 million and taking an estimated 6 years to complete.
17 See Preferred System Plan and Portfolios for 2022-23 Transmission Planning Process (https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-power-procurement/long-term-procurement-planning/2019-20-irp-events-and-materials), Busbar Mapping Dashboard workbook - 38 MMT with 2020 IEPR high EV base case portfolio, Updated Mapped Resources by Substation Summary, 9/20/2022, ResClassification_byArea tab. 18 Ibid.
19 See Dashboard for the Busbar Mapping of the 30 MMT High Electrification Sensitivity Portfolio for 2035, dated 7-1-2022, located at https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/energy-division/documents/integrated-resource-plan-and-long-term-procurement-plan-irp-ltpp/2019-2020-irp-events-and-materials/busbarmapping_30_mmt_hesensitivity_dashboard_07_01_22.xlsx 20 See Table 3-1: Updated transmission capability estimates in Transmission Capability Estimates for use in the CPUC’s Resource Planning Process available here: https://www.caiso.com/Documents/RevisedWhitePaper-2021TransmissionCapabilityEstimates-CPUCResourcePlanningProcess.pdf Item 3
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37 Ultimately, SVCE will select resources with the best overall characteristics for cost and reliability, including the cost of any new transmission for interconnection. The risk of interconnection delays due to the need for new transmission construction is also considered in reviewing all offers in SVCE’s procurement process.

In summary, SVCE believes that its portfolio in terms of resource type and locations is consistent with the PSP Portfolio and the High Electrification Sensitivity Portfolio for the 2022-2023 TPP.

IV. Action Plan
a. Proposed Procurement Activities and Potential Barriers As a community-driven LSE, SVCE works with its governing board to set policy, strategies, and directives.

At a high level, in 2018 SVCE’s board approved a Decarbonization Roadmap21 which set a path for achieving deep decarbonization goals. SVCE’s decarbonization approach consists of four central tenets that are all necessary to achieving deep decarbonization: procure and maintain a sustainable, affordable and carbon-free power supply; electrify the built environment; electrify mobility; and promote energy efficiency and successful grid integration. The following subsections summarize key activities by focus area, but do not include all of SVCE’s ongoing or planned activities.

In each of SVCE’s Conforming Portfolios, the organization does not require new resources until at least 2028. This is due in large part to SVCE’s recent procurement efforts, including eleven contracted projects which the organization is currently working to bring online. Due to current market disruptions stemming from both supply chain issues and interconnection delays and SVCE’s current procurement activities, the organization does not expect to procure any additional resources in the near term. SVCE will continue to monitor its procurement needs and the marketplace to assess when to time new solicitations. SVCE discusses financial and viability considerations for specific resource types in the sections below.

In addition to existing market conditions, SVCE must consider regulatory uncertainty as part of its procurement efforts. Regulatory uncertainty in both the IRP and RA proceedings are of particular importance to SVCE’s current procurement strategy. The ongoing RA Reform work represents meaningful uncertainty for resource valuation going forward. In addition to awaiting final rules for resource counting and reliability requirements, SVCE also intends to monitor the impact of the reform on the marketplace and valuation of specific resource types. Within the IRP proceeding, uncertainty regarding future procurement directives and orders creates significant stranded asset risk for new projects. SVCE discusses these concerns in more detail in Section IV.c. below.

Additionally, SVCE is closely monitoring R.17-06-026, including the recent Staff Proposal to eliminate GHG-free allocations and replace them with a Market Price Benchmark (“MPB”) compensation 21 Available at https://www.svcleanenergy.org/wp-content/uploads/2019/03/Decarbonization-Strategy-Programs-Roadmap_Dec-2018.pdf.

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38 mechanism in the PCIA charge22. Should the Commission adopt staff’s proposal, SVCE would need to procure additional GHG-free resources in the marketplace. This may result in SVCE procuring additional short or long-term RPS resources to fill this need, depending on market offers.

As SVCE’s efforts to help the local community decarbonize continue to expand and scale, it hopes to drive non-linear increases in DERs, electric vehicles, all-electric buildings, and customer literacy on Time of se (“T ”) rates. These changes will significantly impact not only the load, but also the load shape over time, resulting in changes to both our RA needs and hourly emissions. SVCE’s decarbonization approach prioritizes innovation and experimentation. This approach, and the continuously evolving nature of the regulatory and planning space, necessarily results in some degree of uncertainty of the impact and timing of its efforts. SVCE will continue to monitor and forecast the impacts of its decarbonization approach and its impact on SVCE’s supply side needs, but views flexibility in planning going forward as necessary to serve its customers.
i. Resources to meet D.19-11-016 procurement requirements SVCE has met its obligations under D.19-11-016 and currently has all required capacity online to meet the requirements of that order.
ii. Resources to meet D.21-06-035 procurement requirements, including:
a. 1,000 MW of firm zero-emitting resource requirements As part of the MTR order, SVCE was required to procure 20.5 MW NQC of Clean, Firm resources23. SVCE participated in a CC Power RFO issued in October 2021 to procure clean firm resources. CC Power was formed in February 2021 by ten CCAs, including SVCE, to share resources and risk related to the procurement of difficult to acquire resources.

In ctober 2021, CC Power began seeking offers for the sale of firm clean resources (“FCR”) as defined in more detail in California Public tilities Commission (“CP C”) Decision 21-06-35, Ordering Paragraph 2(b) (OP 2(b)), as well as existing resources that otherwise meet the requirements of OP 2(b).1. CC Power sought to acquire up to 200 MWs of FCR through one or more Projects, with deliveries beginning no later than June 1, 2026.

The FCR procurement effort from CC Power resulted in two PPAs from Open Mountain Energy – Fish Lake Geothermal (“ ME”) and rmat Nevada LLC’s geothermal portfolio (“ rmat Geo Portfolio”). The projects were selected from a pool of 16 proposals. The projects are located in California and Nevada. 22 R.17-06-026. Administrative Law Judge’s Ruling Requesting Comments on GHG-free Resources Staff Proposal and Other Issues. Filed 9/12/2022.
https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M496/K874/496874129.PDF 23 The order permitted SVCE to utilize an already contracted resource under development at the time of the order, toward this obligation so long as the LSE could show that other resources were developed to meet the total obligations of both D.19-11-016 and D.21-06-035.

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39 The Ormat Geo Portfolio for CC Power will provide between a minimum of 64 MW and a maximum of 125 MW with an expected COD starting in June 2024 for a term of 20 years. ME’s project size will be 13 MW with an expected COD of April 2024 for a term of 20 years. SVCE will receive and entitlement share of each project.
1) SVCE’s FCR MTR NQC requirement is 20.5 MW; this requirement will be met by:
a. CC Power/ ME’s NQC of ~1.58 MW (14% entitlement)
b. CC Power/Ormat Geo Portfolio NQC of ~13.80 MW (13.4% entitlement) c. SVCE/Ormat Casa Diablo NQC of ~5.6 MW
OME and Ormat Geo Portfolio are located outside of the CAISO. Projects not in the CAISO need import capability (MIC) into California to count as RA, a requirement for the FCR procurement mandate.

Participating CCAs filed jointly a MIC expansion request with the CAISO, which was due on June 1, 2022 in order to take part in the current expansion process. SVCE received adequate MIC for calendar year 2023, but there are no guarantees of sufficient MIC availability throughout the term of the PPAs.

For the Ormat Geo Portfolio, CC Power has the ability to elect to add specific facilities into the PPA depending on availability of MIC and/or the collective CCAs need for the resources to meet other portfolio obligations including RPS. Should SVCE and/or other participating CCAs not acquire sufficient MIC, then it is likely that the CCAs will be unable to meet their respective MTR obligations for FCR through the contracted resources. SVCE will be required to seek out other sources of new geothermal capacity and expects the availability of such resources to be scarce and prices for such resources to be cost prohibitive especially if located within the CAISO. b. 1,000 MW of long-duration storage resource requirements In October 2020, seven joint CCAs issued an RFO seeking acquisition of up to 500 MWs of capacity through the Long Duration Energy Storage (“LDS”) Capacity Request for ffers (“RF ”) to cost effectively enhance the integration of their respective renewable energy portfolios into the CAISO grid and to aid in meeting California’s aggressive greenhouse gas reduction targets by 2030 as outlined in the CPUC 2021- 2030 Integrated Resource Plan Reference System Plan.

The RFO objectives and requirements included the following:
• Procuring cost-effective LDS to integrate renewables & support grid reliability • Joint procurement to reduce overall project risk
• Grid-charged with minimum 8-hour discharge duration
• Meet Resource Adequacy (“RA”) requirements
• COD no later than 6/1/2026
• Minimum delivery term of 10 years
• 50 MW minimum
Through the Joint LDS RFO a total of 51 entities submitted offers (over 9,000 MW), representing 18 distinct technologies including many emerging technologies. Offers were evaluated, ranked and selected for shortlisting with the objective of meeting the RF ’s cost effectiveness goals and requirements under the MTR Order.

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40 Two lithium-ion LDS projects were selected including LS Power’s Tumbleweed LLC for 69 MW and nward Energy’s Goal Line BESS 1, LLC for 50 MW. CC Power executed Energy Service Storage Agreements with the two counterparties and Project Participation Share Agreements with the participating CCAs including SVCE.

SVCE’s MTR LDS obligation is 20.5 MW NQC, which will be met with:
• CC Power/Tumbleweed 11.47 MW NQC;
• CC Power/ Goal Line 11.54 MW NQC
c. 2,500 MW of zero-emissions generation, generation paired with storage, or demand response resource requirements
SVCE discusses the procurement efforts for both the zero-emissions generation resources and the generic requirements in Section d below. Given the nature of the resources applicable to both the zero-emissions generation and the generic resources categories for the MTR order, SVCE’s RF s have been intended to cover both categories and SVCE has found similar barriers to procurement. d. All other procurement requirements
SVCE has issued two RFOs Intended to help satisfy the remaining MTR order requirements, both the generic RA requirements as well as the zero-emitting (“DCPP replacement”) capacity. The first RF was issued in January 2022 in partnership with Central Coast Community Energy (“CCCE”) and Sonoma Clean Power (“SCP”). Sufficient capacity was offered into the RFO to meet the collective group of CCAs MTR requirements. However, several global events materialized while the CCAs were in the process of evaluating offers including a significant run up in the cost of lithium bicarbonate, a key component in the production of lithium-ion batteries, and the U.S. Department of Commerce investigation into potential tariff circumvention on solar cells from China. These combined events resulted in several proposals to the RFO being repriced and/or withdrawn. Ultimately SVCE successfully negotiated an agreement with AES for 75 MW of RA-only from their Baldy Mesa solar plus storage project24. The resource will meet a portion of SVCE’s generic MTR requirement. The project has begun construction and has an expected on-line date of June 2023.

Following the Initial RFO for MTR resources, SVCE Issued a second RFO in August 2022 this time in partnership with CCCE, SCP and Peninsula Clean Energy ("PCE") with a focus on standalone storage.

Several projects were offered into the RFO; however given the prices, project viability and ability to meet MTR requirements, including on-line date, SVCE passed on all offers.

SVCE plans to issue a new RFO in the coming months to meet its MTR need. 24 This contract was executed after the August 1st cutoff date used for this IRP. It is not listed in the RDT, but rather should be considered a subset of the generic MTR procurement listed in the RDT.

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41 iii. Offshore wind
As discussed above Section III.m above, SVCE's Preferred Portfolio did not any offshore wind. In addition to the cost of the resource, the development risk associated with bringing on an emerging technology is a significant barrier for adoption.

SVCE recognizes that the State sees potential value for Offshore wind and urges a thorough stakeholder process to vet its value to the system. Should an offshore wind order occur, SVCE believes it is worth exploring opportunities for a central entity to procure such resources to manage the cost, risk and potential economies of scale for development of such resources. iv. Out-of-state wind
All three of SVCE's conforming portfolios selected some out-of-state wind by 2035. Out of state wind can provide meaningful diversity and benefits to SVCE's portfolio. v. Other renewable energy not described above
Across all Conforming Portfolios, the SVCE modeling exercise resulted in selection of both hybrid and in-state wind resources. Both of these technologies are ones which SVCE has experience contracting and operating and expects to find cost effective on an on-going basis. SVCE has contracted for seven new solar with battery energy storage systems since its inception in 2016. All of these projects are expected to contribute to both SVCE’s RA requirements and RPS goals. The organization also has approximately 150 MW of wind under long-term contract, all of which is comprised of existing or repowered sources.

SVCE expects some additional hybrid resources to provide a cost-effective means to achieve its RPS and RA needs on a forward-looking basis; however has concerns about continued cost pressures facing the development of PV and BESS in the near term and the ability to cost effectively develop the resources in time to meet several portfolio needs and procurement obligations including MTR.

And while SVCE has effectively executed agreements for several new hybrid resources, these projects face continued uncertainty and development challenges.

Despite the value of hybrid resources, SVCE also prioritizes diversification in its portfolio. While the ARS capacity model found wind resources cost effective, SVCE also supported its inclusion in the portfolio for diversification purposes. Based on past solicitations, SVCE does recognize that development of new in-state wind may be a challenge.

In developing its portfolios, SVCE limited its candidate resources to the those selected by the CPUC's RESOLVE model and CSP tools. However, SVCE reiterates that actual procurement decisions are subject to change based on the results of RFOs and actual and forecasted portfolio need at the time of evaluation. SVCE supports the exploration of other renewable energy and renewable integration resources, including emerging technologies such as hydrogen and CCS, as part of the on-going CAISO system planning process and appreciates Energy Division staff’s efforts to integrate these resources more fully in future IRP cycles as outlined in the September 22, 2022 Modeling Advisory Group Item 3
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42 webinar25. Consideration of these technologies in future LSE and system plan processes may have meaningful impact on SVCE’s projected portfolio needs.
vi. Other energy storage not described above
As noted in the response to Section V. above, SVCE did not allow any candidate resources beyond those in the IRP modeling tools. SVCE's procurement team continues to assess offers and opportunities as they are presented. In particular, SVCE sees potential diversification value from procuring nonlithium-based batteries in the future and will continue to explore the potential of such technologies. vii. Other demand response not described above
SVCE staff continues to evaluate the value proposition of Virtual Power Plants (VPPs) and explore options for their deployment going forward. The attributes, load shape and technical and economic potential of these resources is still being investigated. As an innovative, new market product, staff determined it was pre-mature to force any VPP capacity in its 2022 IRP portfolios and due to uncertainty of the resources’ attributes did not explicitly model it as a candidate resource26. As described below SVCE will continue to explore market opportunities for VPP and expects that ultimately VPP capacity may replace some portion of the capacity shown in its 2022 Preferred Conforming Plan.

SVCE has spent significant time and effort over the past several years exploring options for establishing a successful VPP. SVCE defines VPPs to be aggregations of DERs that can permit a shifting of energy demand or injections to the grid (i.e., can be used to increase or decrease load, as desired). Demand response is one use case that falls into SVCE’s thinking on VPPs. Enrolling smart DERs into VPPs to provide value to the grid and return that value to customers is a critical part of SVCE’s vision for spurring a widespread increase in DER adoption. An initial whitepaper27 outlining opportunities was created with Gridworks and a group of industry stakeholders, and identified demand response contracts and non-market-integrated load shift as promising concepts for the near term.

In response to the 2019 Public Safety Power Shutoff (PSPS) events, and in keeping with the results of the Gridworks whitepaper, SVCE executed a contract for load modification with Sunrun. This program28 aggregates customer-sited solar and storage systems that both provide islanding backup to the customer in the case of power outages as well as discharging energy during the 4-9 pm window daily to reduce SVCE load. The systems will begin delivering energy in 2023 for ten years. The RA value of these resources is dependent in part on the outcome of the Resource Adequacy Reform work currently in process at the CPUC. SVCE will observe actual dispatch in 2023 and present additional data to CEC next year to adjust SVCE’s peak load based on this contract’s actual dispatch. Rules that reduce the countable capacity of BTM solar and storage resources make pursuit of these types of contracts less attractive and the uncertainty in the market has negatively affected the scale of this program. SVCE would like sign more of these kinds of contracts as they provide both customer and grid benefits. 25 Recording and presentation slides available: https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-power-procurement/long-term-procurement-planning/2022-irp-cycle-events-and-materials 26 Shed Demand Response, which likely has many similar attributes to VPP, was modeled but ultimately not selected by the capacity expansion tool.
27 Available at https://gridworks.org/wp-content/uploads/2019/08/GW_Silicon-Valley-Clean-Energy-report.pdf 28 Program webpage at https://www.svcleanenergy.org/lights-on-sv/ Item 3
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43 SVCE views the impact of new load from modifiers, such as EVs and BTM resources, to be a significant driver of its future load increase. Managing the timing of this load to ensure system-wide affordability in the future is of particular importance to SVCE. To that end, in 2020 SVCE hired consultants E3 and Ascend Analytics to understand the magnitude of value available from different assets and through different value streams29. Figure 12 below shows how EV charging was identified as providing the most value. As customers switch to TOU rates, the value available from resource adequacy decreases, presuming consumers are rationally responding to the TOU rate structure, but the value from energy value streams remains.

Figure 12: Value streams available by technology
In the interest of capturing these value streams and helping customers reduce their ongoing EV charging costs, SVCE launched its GridShift: EV Charging program30. This app is now actively being used by nearly 600 EVs to simplify the charging experience and better follow TOU rates and the carbon intensity of the grid. This app is not integrated into the energy markets, but instead shifts load daily to avoid the worst times of day. SVCE has also layered on demand response events to minimize charging during Flex Alerts and has run “clean charging events” to promote an increase in EV charging during particularly clean hours of the day31.

In December of 2022, in parallel with PG&E, SVCE is planning to launch a new electrification rate, E-ELEC.

To encourage and reward electrification, the rate includes a flat monthly fee, reduced $/kWh time-of-use charges, and higher peak vs. off-peak rate differentials. Customers with an EV, heat pump water heater or HVAC system will be eligible. SVCE is incorporating this new rate into our online customer education platform (SVCE eHub), and exploring the potential for additional rate discounting to further encourage adoption.
29 Slide deck summarizing key findings available at https://www.svcleanenergy.org/wp-content/uploads/20201020_AscendAnalysis_digital.pdf 30 Program webpage at https://www.svcleanenergy.org/gridshift-ev/ 31 An initial report by the app provider, ev.energy, can be found at https://www.svcleanenergy.org/wp-content/uploads/GridShift-pilot-report_2021.pdf, and SVCE will soon be releasing a third-party evaluation report analyzing impacts of the app at https://www.svcleanenergy.org/research-analysis/#1639688703076-c88f0dce-ef3b Item 3
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44 In response to the launch of the emergency load reduction program (ELRP) in 2021, SVCE supported outreach to large, tech-savvy commercial and industrial customers in its service territory – including customers with significant back-up generation capacity. SVCE took the lead in creating a webinar with PG&E, Olivine, and other local CCAs to push more of these customers to enroll in the new ELRP. SVCE also chose to allow its eligible residential customers to be automatically enrolled in the A.6 residential ELRP program, leading ~60,000 local accounts to be included in the program. SVCE would like to do more to promote ELRP to residential and non-residential customers, but needs information on which of its customers are already enrolled and the resultant level of impact so SVCE can target its marketing appropriately. To date, PG&E has not shared data on customer participation in ELRP, so more targeted outreach by SVCE has not been possible.

Moving forward, SVCE is looking into next steps that can be taken to use VPPs for near-term procurement and long-term impact. In October 2021, SVCE completed an analysis with Electron to scope out what a local DER market might look like and how to integrate it into SVCE operations32. In the coming months, SVCE will be reviewing findings from its efforts so far on VPPs, considering the Electron work, and identifying actions that can be taken to provide a meaningfully sized VPP in the near-term to help better control its load in the coming years. SVCE will also take steps to support its longer-term vision of how to include VPPs in grid operations, but the potential there will depend on support from state agencies as there are significant barriers to overcome33.

Outside of SVCE, several proceedings at the CPUC may also impact the value proposition and deployment of DERs and VPP. Among these are R.18-12-006, R-21-06-017 and R.22-07-005. SVCE’s regulatory team, in coordination with CalCCA, plans to continue to monitor and participate in such proceedings. The outcomes and decisions from these Rulemakings are likely to impact VPP adoption and therefore the actual supply side resource needs of SVCE during the current planning horizon of this IRP cycle.

VPPs have the potential to dramatically reshape SVCE’s load in the next decades. Not only will they play a key role in reducing peak loads and costs, they will also help utilize clean resources available to the grid mid-day, reducing system curtailment projected in the 2030s, and shifting load away from hours where the grid is relying on fossil generation. They will also support the deployment of more DERs by passing value back to customers. The key question is how quickly SVCE will be able to scale its approaches and leverage them to make substantial changes to the load forecast. viii.Other energy efficiency not described above
Energy efficiency is an essential part of SVCE’s four tenets to decarbonization. Having customers improve their efficiency before electrifying technology allows for smaller equipment, lower costs, and more bill savings. SVCE considers efficiency during program design and will often include requirements which support greater efficiency. For example, all heat pump water heaters incentivized need to have a Uniform Energy Factor of 2.9 or greater.
32 Electron pilot analysis was based on SVCE data and stakeholder interviews, but aren’t necessarily representative of SVCE’s views. Documents can be found at https://www.svcleanenergy.org/innovation-electron/ 33 For example, see SVCE’s comments filed on Rulemaking 21-06-017 (modernizing the grid for a high DER future):
https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M400/K593/400593850.PDF Item 3
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45 On the SVCE’s ‘eHub’ website for customer education, the Appliances Assistant34 tool helps customers search for new EV chargers, thermostats, dryers, cooktops and more. This tool is provided by Enervee and includes a score calculated on the products’ energy efficiency to help customers find the most efficient options. SVCE customers can also leverage PG&E energy efficiency programs.

SVCE does not expect its standalone energy efficiency efforts to have a major impact on its load beyond what is included in the IEPR forecast but will continue to include efficiency in its electrification and decarbonization program design.
ix. Other distributed generation not described above
In terms of aggregating distributed generation at customer sites, SVCE considers this within the VPP framework and can be combined with comments in the demand response section above.

Relative to solar, approximately 10% of SVCE’s residential customers are on a NEM tariff. SVCE’s NEM rates currently mirror the IOU, though SVCE offers a more attractive net surplus compensation rate (2X) for customers who generate an annual surplus, and 2.5X for CARE/FERA customers. While solar adoption in SVCE’s service area has been strong historically, it’s difficult to predict how the new NEM 3.0 tariff will impact solar uptake in the future, and implications for the IEPR forecast. SVCE will continue to actively promote pairing of battery storage with solar, and to the extent possible, solutions that enable alignment of building electrification loads with solar production.

In response to COVID-19 and the corresponding economic impact on customers, the SVCE board approved $10M in funds to provide relief to the community35. A portion went to providing bill credits for customers on CARE/FERA rates, and $5M was reserved for SVCE’s thirteen member agencies to evaluate and install resiliency infrastructure in their communities. While the projects are varied, the inclusion of on-site generation to support resilience means they may also be able to provide SVCE with value as local, distributed generation. SVCE is working to identify if and how to integrate these forthcoming projects into our portfolio36.
x. Transportation electrification, including any investments above and beyond what is included in Integrated Energy Policy Report (IEPR) Emissions from transportation comprise the largest source of GHG emissions in SVCE’s territory, and SVCE has created programs to tackle some of the hardest challenges in this sector. SVCE’s electrification focus has historically been on electric vehicle (EV) charging infrastructure as a way to support rapid and widespread adoption of EVs. Silicon Valley already has some of the highest EV penetration in the state, and SVCE expects to see this trend to continue and even increase as more of its programs start to create an impact. SVCE’s future forecasts should take into account these localized trends. While SVCE did not submit an alternate forecast this IRP cycle, due to timing issues with its internal forecast, it does expect that its customers are further along on the EV adoption curve than the state at large, and therefore the 34 Appliances Assistant tool available at https://appliances.svcleanenergy.org/ 35 More details on SVCE COVID-19 response at https://www.svcleanenergy.org/covid-19/ 36 Press release for one of the completed resilience projects in Milpitas at https://www.svcleanenergy.org/news/milpitas-community-center-powers-up-with-resiliency-grant-from-silicon-valley-clean-energy/ Item 3
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46 load share allocation of EV load in the CSP is likely inappropriate. SVCE does not have sufficient insight to what extent the IEPR forecast accounts for its electrification programs or how the CEC views the impact of such programs on load growth.

Some key efforts to scale up EV charging include the California Electric Vehicle Infrastructure Project (CALeVIP)37, which is a regional deployment of a statewide program funded by the CEC. SVCE partnered with four other LSEs across San Mateo and Santa Clara Counties to attract CALeVIP to the region, and the CEC and SVCE combined to put in $12M to incentivize new EV charging to be installed in SVCE territory in the 2020-2024 timeframe.

SVCE has also launched several of its own incentive programs to target adoption by multifamily property tenants, who locally own EVs at much lower rates than single-family property tenants. One program provides free concierge support to multifamily property managers to learn about EV charging options, have a site visit from an expert, and generate engineering estimates to make getting bids from contractors easy38. They are also eligible for incentives from SVCE when installing the equipment.

Another program is exploring the potential for nearby DC fast chargers to meet the needs of these tenants (as some multifamily properties do not have electrical capacity for on-site charging without costly upgrades) by providing incentives for installations near clusters of older multifamily housing39.

In early 2019, SVCE and its member agencies embarked on an ambitious project to adopt local building codes that would exceed the state code in promoting decarbonization benefits. These Reach Codes can include requirements for installing EV chargers or laying EV-ready wiring to parking spaces in new construction. f SVCE’s thirteen communities, nine adopted some form of EV Reach Code that was more supportive of EV charger deployment than CalGREEN40. SVCE is working with its member agencies once again in 2022, as part of the triennial cycle, to adopt new Reach Codes and ensure that new construction in SVCE territory continues to promote EV charging.

The forthcoming investments from the Inflation Reduction Act and state funding will further support and increased rate of EV charger deployment and EV adoption. However, SVCE has noted in its programs so far that interconnection timelines, permitting processes, and supply chain issues are dramatically pushing out EV charger installations and are limiting the ability of the state to meet its GHG goals. SVCE is working on reducing the friction in the permitting processes with its member agencies, but will look to CEC and CPUC action to accelerate the interconnection process with PG&E and ameliorate supply chain delays.
xi. Building electrification, including any investments above and beyond what is included in Integrated Energy Policy Report (IEPR)
The Decarbonization Roadmap promotes electrification in the built environment and transportation sectors, grid integration, and a carbon-free electricity grid. This was followed by the Electric Vehicle 37 CALeVIP homepage for the local region at https://calevip.org/incentive-project/peninsula-silicon-valley 38 Multifamily technical assistance and rebate webpage at https://www.svcleanenergy.org/ev-charging-assist/ 39 DC Fast Charger incentive program webpage at https://www.svcleanenergy.org/dcfastchargers/ 40 SVCE webpage for Reach Codes, including a table tracking EV charger codes adopted for the 2020 code cycle at https://www.svcleanenergy.org/reach-codes/
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47 Infrastructure Joint Action Plan41 in 2019 and the Building Decarbonization Joint Action Plan42 in 2020 to further scope key SVCE initiatives in those sectors. As of September 2022, SVCE’s board had set aside approximately $52M to be used for decarbonization programs.

As mentioned above, SVCE and its member agencies worked in 2019 to help reduce GHG emissions from new buildings by developing and adopting local Reach Codes that surpassed the state code in promoting decarbonization43. f SVCE’s thirteen communities, twelve approved some form of building Reach Code. As such, SVCE suspects its share of state building electrification exceeds its load share allocation, as given in the assigned IRP forecasts. As with transportation electrification, SVCE is not aware of the extent to which the IEPR forecast accounts for its building electrification efforts and programs.

The exact Reach Codes implemented varied by jurisdiction, and included banning methane gas altogether or encouraging all-electric construction. SVCE served as a facilitator and technical advisor, while also bringing in an expert consultant to run the analysis and draft language. In 2022, SVCE is helping its member agencies once again consider Reach Codes to maintain the standards set, improve language and scope, and generally ensure that new construction in SVCE territory prefers to be electric.

After 2022, SVCE will turn towards existing buildings and begin working with interested member agencies to explore how best to adopt policies targeting this critical sector. These existing building policies have the potential to accelerate electrification at a scale and speed otherwise impossible, and would greatly affect SVCE load in the future if adopted.

In addition to supporting Reach Codes, SVCE has several specific programs targeted at building electrification. SVCE has been offering incentives for heat pump water heaters and panel upgrades to its customers for several years to increase local adoption44. In Q4 2022, SVCE will be expanding its incentives to include heat pump space conditioning, pre-wiring, and promoting all-electric retrofits.

These incentives will continue to support the growth of the local all-electric market and contractor network, in addition to the equipment directly incentivized by SVCE. There is large uncertainty in what uptake will look like for this new offer from SVCE, although the initial funding should impact hundreds of homes. SVCE’s Board may increase funding if the program is successful in reaching a broad audience.

To help reduce the upfront costs associated with retrofit building electrification and allow more customers to be able to participate in the benefits of decarbonization, SVCE has been exploring financing options to augment its other programs. A key effort is the Tariffed On-Bill Financing pilot that SVCE is pursuing with TECH and submitted to the Clean Energy Finance proceeding45. The draft scope includes heat pump water and space heating, along with efficiency improvements, and may ultimately include electrification of all devices in the home. If this pilot advances, SVCE will be able to test out the attractiveness of this offer and the impact on customers, along with the necessary programmatic elements to make it work. If successful, SVCE and PG&E will likely continue to scale financing offerings 41 Available at https://www.svcleanenergy.org/decarbonization/#evi-joint-action-plan_sept-2019/1/ 42 Available at https://www.svcleanenergy.org/decarbonization/#building-decarbonization-joint-action-plan_011821-web/1/ 43 SVCE webpage for Reach Codes, including a table tracking building codes adopted for the 2020 code cycle at https://www.svcleanenergy.org/reach-codes/
44 Webpage for SVCE’s heat pump water heater program at https://www.svcleanenergy.org/water-heating/ 45 Presentation available from the May 12, 2022 workshop link found at https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/energy-efficiency/clean-energy-financing Item 3
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48 through this mechanism, drive customer upfront costs down, and allow for immense scaling of electrification. The ability of SVCE to test this depends on approval of the pilot by the CPUC and the direction given to PG&E on how and when to make adjustments to their billing system to accommodate the necessary features for Tariffed On-Bill Financing. This pilot will also require that the equipment be controlled to best follow TOU rates and maximize bill savings, so this approach will inherently optimize these new loads to the benefit of SVCE’s load shape.

Figure 13: SVCE’s presentation of a “FutureFit” home that embraces intelligent decarbonization
Multiple SVCE initiatives have been developed with the intention of catalyzing impacts across the other subsections and create stepwise increases in electrification. While modeling the future impacts of some of these efforts is challenging, they may lead to some of the largest changes in SVCE’s load over the current IRP planning horizon.

One initiative which will impact deployment of a variety of electrification technologies across resource categories is the FutureFit Fundamentals program for workforce development46. Eligible contractors get $500 for completing the course and may also be able to get up to $5,000 to install an electric technology in their home or business. The approximately five hours of training cover a variety of electric technologies, and SVCE hopes this will increase the size of the local contractor pool that is available, educating customers, and providing awareness of the benefits of this equipment. The online training and stipend is available to contractors throughout Santa Clara County, and is offered in both English and Spanish language.

As referenced in the transportation electrification section, SVCE is also working with its member agencies to modernize and simplify permitting processes to pave the way for the immense number of permits that will be required for electrification retrofits. Removing any bottlenecks here will be critical to widespread and rapid adoption of all types of DERs. SVCE has initially committed $3.2M to provide tools and resources to its member agencies to support this needed work. 46 Webpage for SVCE’s FutureFit Fundamentals workforce development program: https://www.svcleanenergy.org/futurefit-fundamentals/ Item 3
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49 xii. Other
SVCE’s location in the Silicon Valley gives it a unique opportunity to engage with top innovators and startups. As deep decarbonization will require overcoming major hurdles in cost-effective ways, SVCE created its Innovation Onramp program to attract novel pilots that demonstrate scalable solutions47.

SVCE has selected four cohorts to fund over the last few years and worked on 12 pilots in that span48.

While not all end up achieving their goals, these pilots can unlock paradigm-shifting approaches to intractable problems. This innovation lens also extends to technologies that can reduce need for grid infrastructure upgrades and help manage SVCE’s load. Some of SVCE’s pilots are turned into long-term SVCE programs (like the Data Hive49 for access to customer energy data to enable improved DER adoption or the GridShift: EV Charging app) and some go on to attract significant outside funding (like the CEC grants for both the EVmatch50 and Ecology Action51 approaches to multifamily EV charging).

SVCE will continue to fund innovation pilots to try to unearth these major advances in thinking that will accelerate the transition to deep decarbonization and help SVCE best manage its load in a future with accelerating DER adoption.
b. Disadvantaged Communities
As a community-based LSE, SVCE’s Board of Directors is made up of thirteen elected officials representing each of the thirteen member agencies that comprise SVCE’s service territory. Decisions on procurement, programs and investments are made by these elected officials in the interest of all their constituents, including specific underserved communities that they and their agency staff are closest to.

When SVCE’s board approved an additional $17M to be spent on decarbonization programs in March 2022, they directed staff to include program designs that would support equitable outcomes in reaching certain underserved groups and provided feedback on the ideas offered by staff52. In addition, they directed staff to implement SVCE credits equivalent to a 10% discount for CARE/FERA customers through the remainder of 2022, and similar credits are now planned for 2023. 47 Impact report summarizing some Innovation Onramp goals and impacts at https://www.svcleanenergy.org/innovation/#innovation-impact-report_web/1/ 48 List of SVCE’s Innovation nramp pilot by cohort at https://www.svcleanenergy.org/innovation-pilots/ 49 Main webpage for the Data Hive, with a link to see the directory of companies registered to use the Data Hive to receive instant, authorized, and secure access to customer usage data at https://data.svcleanenergy.org/ 50 Final report from EVmatch on their multifamily EV charging pilot at https://www.svcleanenergy.org/wp-content/uploads/SVCE-Innovation-Onramp-Summary_EVMatch.pdf 51 Final report from Ecology Action on their multifamily EV charging pilot at https://www.svcleanenergy.org/wp-content/uploads/IN-Ecology-Action-Innovation-Onramp-Final-Report_11.5.21_digital.pdf 52 See presentation staring slide 50 in the agendize presentation at https://www.svcleanenergy.org/wp-content/uploads/2022- 0309-Presentations-Combined-and-scrubbed.pdf
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50 SVCE’s decarbonization programs and community outreach focus on its customers within its territory and are designed to be especially sensitive to the needs of what SVCE terms “underserved communities.” SVCE completed an internal Programs Equity Framework to guide a systematic process for learning and considering needs of underserved communities, defining these groups, understanding their current state of DER adoption and barriers, and tracking ongoing impacts of SVCE programs in how they reach these groups.

An underserved community to SVCE is one that is underrepresented in decision-making and whose access to key information and resources is limited when it comes to energy issues and receiving the benefits of decarbonization. Underserved communities can face barriers associated with lower socioeconomic status (affordable housing tenants, CARE/FERA customers), type and ownership of housing (renters, tenants of older multifamily properties), geographic isolation, language barriers or cultural isolation, limited access to digital platforms, or lack of knowledge or information on a subject.

SVCE uses this broader definition to ensure it considers all customers who are disadvantaged or underserved in some way in its territory.

The primary indicator used by SVCE to track efforts on program impact and outreach is the Socioeconomic Vulnerability Index (SEVI), originally developed as part of the CP C’s Affordability Report. SVCE has taken the statewide SEVI data by census tract and grouped the tracts that are in SVCE territory into four quartiles, as shown in Figure 14 below. All DACs within SVCE’s service territory are in the SEVI 4 quartile.

Figure 14: Map of SVCE census tracts by SEVI quartile
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51 SVCE has performed analysis to understand the different demographics in these SEVI quartiles using utility and tax assessor data. See Table 20 below for a high-level overview of some example statistics by SEVI quartile that SVCE uses to inform program design.

Table 20: SEVI quartiles and key demographic information The goal of using SEVI as a primary indicator is to provide a first pass at identifying communities and customers in need of decarbonization support and track impacts, but there are secondary indicators that SVCE also uses to dig further into the data to consider specific barriers (e.g., CARE/FERA, medical baseline customers). SEVI quartiles help SVCE staff think about program design and outreach.

As an example, in Figure 15 there is a housing comparison performed by SVCE between SEVI 1 (best-off) and SEVI 4 (worst-off). Considering that the population in SEVI 4 tends to have lower electrification rates overall is important, but understanding the differences in housing composition is critical to decide how best to formulate a program for this underserved community. This analysis, in part, led to SVCE’s decision to offer both a building electrification incentive program (simpler for single-family homeowners) and a direct installation program (designed for multifamily). SVCE is still considering how best to reach single-family renters, another underserved subgroup, and has been pursuing the Tariffed On-Bill Financing pilot as a possible path.

Figure 15: housing comparison of SEVI 4 (worst-off) and SEVI 1 (best-off) quartiles Item 3
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52 As an example of using SEVI to understand outreach to customers, Figure 18 below shows a breakdown by accounts, CARE/FERA, and outreach done in support of a customer survey and an incentive program.

The outreach was performed several years ago and later analyzed via SEVI to see who was reached. The participation rates in the heat pump water heater (HPWH) incentive program are also being tracked and compared to the HPWH outreach to understand how successful SVCE is in engaging all types of customers with that approach.

Figure 16: analysis of SEVI outreach for an SVCE survey and incentive program SVCE is still in the process of integrating its Programs Equity Framework into day-to-day program and marketing operations. Figure 17 below shows steps that SVCE currently plans to follow in every program design to promote equity and reach underserved communities. By adding these steps into its program design checklist, SVCE will institutionalize the consideration of the needs of underserved communities.

A fundamental component identified to support the implementation of the Programs Equity Framework was strengthening ties with local community-based organizations representing the underserved communities that SVCE is trying to reach. These organizations will be best suited to helping SVCE act on the steps from the Programs Equity Framework to receive useful input on program design and market effectively to their communities.

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53 Figure 17: key steps to considering underserved communities in program design and implementation
In 2018, SVCE awarded $75,000 in grant funds to six local nonprofits to collaborate on outreach to traditionally hard-to-reach and underserved residential customers. The purpose of this small grant pilot program was to provide accurate information to SVCE customers about SVCE’s mission and benefits, as well as build relationships in underserved communities for future program development and deployment. The grants were offered to trusted, local nonprofits that serve underrepresented communities and harder-to-reach audiences in the SVCE service territory. These communities and audiences include low-income residents; seniors; customers eligible for Medical Baseline discounts; customers with low English language proficiency; and customers living in the south county, unincorporated Santa Clara County, and Milpitas. In total, the grants facilitated outreach to over 310,000 residents.53
This collaboration has helped SVCE promote social equity by ensuring that customers in target communities are aware of how they can benefit from SVCE programs and rates, which is a shared priority among state regulators. In 2022, SVCE will continue to strengthen ties with the community through a focused outreach plan including in-person outreach at community facilities, schools, retail and neighborhood associations ($30K) as well as launching a native language awareness campaign ($45K) to support the implementation of the Programs Equity Framework.

Finally, SVCE is considering what additional resources will be needed to make the Programs Equity Framework an effective tool. SVCE may create a staff role that is partially dedicated to this, hire a consultant to assist with the outreach and connections with community-based organization, and/or create staff-wide training to promote internal awareness of issues affecting these communities. The 53 Over 3,000 total engagement and over 308,000 total reach Item 3
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54 specifics will be adjusted in the coming months and years as SVCE tries different approaches and observes which deliver the best outcomes for underserved customers.

There are also programs SVCE has already launched which particularly support underserved customers through their design. In the Innovation Onramp program, SVCE provided grant funding to launch two innovative pilots to provide reliable and affordable charging access to multifamily residents. The pilot with EVmatch tested their reservation-based software platform for shared charging for multi-unit dwelling tenants54. The pilot with Ecology Action demonstrated lower power charging technology and a business model designed for affordable housing communities55. SVCE further supported successful applications for CEC grant funds by both companies to greatly expand their efforts locally.

Per SVCE’s Electric Vehicle Infrastructure Joint Action Plan, and described in the Action Plan section, SVCE is currently offering two programs focused on deployment of EV charging to serve multi-family properties. The “Priority Zone DC Fast Charging” program offers financial incentives for new fast charging stations located near concentrations of older and therefore typically lower-income multifamily properties. The map below shows a few “Priority Zones.” SVCE’s FutureFit Assist: EV Charging program offers a full suite of free technical assistance to multifamily properties for design and deployment of onsite charging, in addition to incentives, to help multifamily property managers who typically struggle to participate in incentive programs.

Figure 18: map of some SVCE “Priority Zones” around clusters of multifamily properties (MUDs) in Gilroy
To help serve our most vulnerable customers, SVCE is working with a local non-profit agency to provide free portable batteries for medical baseline customers located in fire-prone areas, and those most likely to be impacted by public safety power shutoff (PSPS) events. And as previously noted, SVCE is currently 54 https://www.svcleanenergy.org/innovation-evmatch/
55 https://www.svcleanenergy.org/innovation-ecologyaction/ Item 3
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55 providing rate relief to CARE/FERA customers, equal to an average 10% discount on SVCE’s generation rates.

SVCE is engaging actively with our 270,000+ customers, through both direct and electronic channels.

Quarterly, SVCE hosts a meeting with our community partners to gain feedback on SVCE’s energy services, program results and upcoming plans. Community partners include local advocacy groups, citizens serving on local governmental commissions, and community non-profit organizations. And as a public community choice energy agency, SVCE Board and Committee meetings are publicly noticed and open to the public for input and comment.

SVCE’s website includes the ‘eHub’ customer resource center, designed to inspire, educate, and enable action related to clean energy and electrification. eHub provides educational content, tools and third-party services for a broad range of topics, including solar + battery storage, electric vehicle costs, savings, and available incentives; and heat pump water heater models and ratings. SVCE conducts several major outbound email campaigns each year focused on education related to electrification, and resources available to customers.

SVCE’s website and compliance notifications are available in four languages – English, Spanish, Standard Chinese, and Vietnamese.
c. Commission Direction of Actions
While SVCE has attempted to put forward reasonable and actionable portfolios as part of this IRP, there is significant uncertainty in regulatory and market conditions which were considered in selecting a preferred portfolio. Part of SVCE’s qualitative evaluation of the Conforming Portfolios included assessing regulatory risk. Generally, such risks provide incentive for an LSE to maintain optionality on a forward-looking basis to adapt to changing conditions. More specifically, the suggestion of “resource specific” enforcement of the 2022 IRPs in Energy Division’s recent Staff ptions paper was a barrier to pursuing a more aggressive IRP Preferred Portfolio this cycle. Combined with current market conditions for development and interconnections of new projects, SVCE opted to select a more conservative portfolio as its preferred case in the event the Commission penalizes LSEs who do not or cannot implement the Preferred Portfolios presented in the 2022 LSE IRP filings.

Previous IRP procurement orders have penalized SVCE for proactively procuring resources to meet its long-term obligations to its customers and the state by not allowing these contracted resources to count toward procurement orders. These orders also unfairly shift costs to LSEs who may be made “long” by a load share based allocation. SVCE has also witnessed the impact of such orders, especially resource specific carve outs, on the market and believes it contributes toward market power issues. SVCE appreciates the Commission’s acknowledgement of such issues in D.22-02-004 and the recent ALJ ruling on Near-term Actions to Encourage Additional Procurement56. While SVCE recognizes the Commission is considering alternate IRP program designs, there remains risk to LSEs for pro-actively contracting new resources.
56 See Administrative Law Judge's Ruling Seeking Comments on Staff Paper on Procurement Program and Potential Near-term Action to Encourage Additional Procurement. R-20-05-003. September 8, 2022. https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M496/K688/496688637.PDF Item 3
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56 While SVCE was cautious this cycle in its Preferred Conforming Plan election, it does appreciate the Commission’s efforts to design an improved structure for procurement which balances the needs of LSE autonomy and assurances for regulatory bodies that the system can meet its objectives. SVCE is still evaluating options and appropriate design for the programmatic approach. It generally supports the notion that procurement should not be driven by procurement orders. SVCE believes that requiring LSEs to contribute fairly to the system needs is, in principle, a commendable goal. Details for how to assess and enforce portfolios require careful evaluation. Core to any future procurement methodology is ensuring reasonable consistency in regulatory and especially IRP planning assumptions as discussed in Section V below. SVCE looks forward to engaging in stakeholder processes to further elaborate on a programmatic approach to the IRP. SVCE encourages the Commission to act expeditiously to design and implement such a program prior to the 2024 IRP cycle to provide LSEs with more regulatory certainty as they develop their next IRP portfolios.

V. Lessons Learned
SVCE applauds the Commission for the continued evolution of the Integrated Resource Planning process, which has had meaningful improvements over the past three cycles. Many of the suggested changes proposed by SVCE in its 2020 IRP have been adopted. In particular, the changes to the RDT and CSP tools and requirements this cycle represented meaningful improvement over prior cycles by both increasing usability and allowing a greater degree of flexibility for LSEs. Additionally, SVCE appreciates the Commission and staff for allowing LSEs to exceed the minimum GHG-targets and provide the opportunity to submit their own load forecasts for consideration. These changes enable LSEs to provide portfolios more representative of their intended actions.

As the IRP process continues to evolve, SVCE provides the following suggestions for further improvements to the proceeding going forward.

First, SVCE notes that the current timing of the planning process creates challenges for LSEs trying to develop actionable portfolios. Staff did not release several key documents until mid-July. Given SVCE utilized many of the inputs from the CSP and RDT tools in its modeling effort to ensure alignment between its portfolio optimization and the compliance tools, the majority of the work on this IRP could not begin until after materials were released. Further, staff continued to change requirements as late as September 30, 2022. Any changes or clarifications to requirements near the filing deadline can be challenging to implement and take time that could otherwise be used to refine the narrative or add additional analytical insights which would provide value to the larger stakeholder process. CCAs such as SVCE are governed by a board of directors who must review and approve the IRP filing during regularly scheduled board meetings which do not align with regulatory filing dates. This means that CCAs must have largely complete IRPs weeks in advance of the filing deadline. In practice, SVCE had less than three months to review compliance tools, calibrate models, develop portfolios and complete the required deliverables.

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57 Should the Commission adopt a compliance-based approach to the IRP in which LSEs are held to their IRP portfolios as described in the September 2022 Staff Options Paper providing additional time to LSEs to ensure that they are able to more fully explore pathways to hitting their targets will be necessary to ensure the success of the program57. It is not reasonable to ask LSEs be held to a ten or more-year plan which they had less than one quarter to develop.

Second, the IRP process as it stands today lacks cohesion due to radical shifts in planning assumptions between cycles. This is made worse by procurement orders which effectively negate the plans LSEs file.

These dramatic shifts in expected resources and requirements, planning reserve margins and resource counting methodologies, result in IRP results which are disconnected from previous cycles, making implementation of plans difficult or impossible. If a sustainable IRP implementation track is to be developed planning assumptions must be stabilized to ensure that LSEs can iterate on and develop a reasonable path toward meeting their long-term planning goals.

Finally, SVCE once again encourages the CPUC to undertake further integration and complementarity between the IRP and RPS Procurement Plan processes and timelines. Many of the same fundamental questions addressed in the RPS Procurement Plan are of interest in the IRP exercise, including future resource selection and impacts of resource selection on grid reliability. Developing internal CPUC infrastructure that would allow LSEs to avoid duplicating this information would reduce administrative burden and allow for more focus on substantive consideration of key policy issues. 57 "Reliable and Clean Power Procurement Program Staff Options Paper". CPUC Energy Division. September 2022.

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58 Glossary of Terms
Alternative Portfolio: LSEs are permitted to submit “Alternative Portfolios” developed from scenarios using different assumptions from those used in the Preferred System Plan with updates. Any deviations from the “Conforming Portfolio” must be explained and justified.

Approve (Plan): the CPUC’s obligation to approve an LSE’s integrated resource plan derives from Public Utilities Code Section 454.52(b)(2) and the procurement planning process described in Public Utilities Code Section 454.5, in addition to the CPUC obligation to ensure safe and reliable service at just and reasonable rates under Public Utilities Code Section 451.

Balancing Authority Area (CAISO): the collection of generation, transmission, and loads within the metered boundaries of the Balancing Authority. The Balancing Authority maintains load-resource balance within this area.

Baseline resources: Those resources assumed to be fixed as a capacity expansion model input, as opposed to Candidate resources, which are selected by the model and are incremental to the Baseline.

Baseline resources are existing (already online) or owned or contracted to come online within the planning horizon. Existing resources with announced retirements are excluded from the Baseline for the applicable years. Being “contracted” refers to a resource holding signed contract/s with an LSE/s for much of its energy and capacity, as applicable, for a significant portion of its useful life. The contracts refer to those approved by the CPUC and/or the LSE’s governing board, as applicable. These criteria indicate the resource is relatively certain to come online. Baseline resources that are not online at the time of modeling may have a failure rate applied to their nameplate capacity to allow for the risk of them failing to come online.

Candidate resource: those resources, such as renewables, energy storage, natural gas generation, and demand response, available for selection in IRP capacity expansion modeling, incremental to the Baseline resources.

Capacity Expansion Model: a capacity expansion model is a computer model that simulates generation and transmission investment to meet forecast electric load over many years, usually with the objective of minimizing the total cost of owning and operating the electrical system. Capacity expansion models can also be configured to only allow solutions that meet specific requirements, such as providing a minimum amount of capacity to ensure the reliability of the system or maintaining greenhouse gas emissions below an established level.

Certify (a Community Choice Aggregator Plan): Public Utilities Code 454.52(b)(3) requires the CPUC to certify the integrated resource plans of CCAs. “Certify” requires a formal act of the Commission to determine that the CCA’s Plan complies with the requirements of the statute and the process established via Public Utilities Code 454.51(a). In addition, the Commission must review the CCA Plans to determine any potential impacts on public utility bundled customers under Public Utilities Code Sections 451 and 454, among others.

Clean System Power (CSP) methodology: the methodology used to estimate GHG and criteria pollutant emissions associated with an LSE’s Portfolio based on how the LSE will expect to rely on system power on an hourly basis.

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59 Community Choice Aggregator: a governmental entity formed by a city or county to procure electricity for its residents, businesses, and municipal facilities.

Conforming Portfolio: the LSE portfolio that conforms to IRP Planning Standards, the 2030 LSE-specific GHG Emissions Benchmark, use of the LSE’s assigned load forecast, use of inputs and assumptions matching those used in developing the Reference System Portfolio, as well as other IRP requirements including the filing of a complete Narrative Template, a Resource Data Template and Clean System Power Calculator.

Effective Load Carrying Capacity: a percentage that expresses how well a resource is able avoid loss-of-load events (considering availability and use limitations). The percentage is relative to a reference resource, for example a resource that is always available with no use limitations. It is calculated via probabilistic reliability modeling, and yields a single percentage value for a given resource or grouping of resources.

Effective Megawatts (MW): perfect capacity equivalent MW, such as the MW calculated by applying an ELCC % multiplier to nameplate MW.

Electric Service Provider: an entity that offers electric service to a retail or end-use customer, but which does not fall within the definition of an electrical corporation under Public Utilities Code Section 218.

Filing Entity: an entity required by statute to file an integrated resource plan with CPUC.

Future: a set of assumptions about future conditions, such as load or gas prices.

GHG Benchmark (or LSE-specific 2030 GHG Benchmark): the mass-based GHG emission planning targets calculated by staff for each LSE based on the methodology established by the California Air Resources Board and required for use in LSE Portfolio development in IRP.

GHG Planning Price: the systemwide marginal GHG abatement cost associated with achieving a specific electric sector 2030 GHG planning target.

Integrated Resources Planning Standards (Planning Standards): the set of CPUC IRP rules, guidelines, formulas and metrics that LSEs must include in their LSE Plans.

Integrated Resource Planning (IRP) process: integrated resource planning process; the repeating cycle through which integrated resource plans are prepared, submitted, and reviewed by the CPUC Long term: more than 5 years unless otherwise specified.

Load Serving Entity: an electrical corporation, electric service provider, community choice aggregator, or electric cooperative.

Load Serving Entity (LSE) Plan: an LSE’s integrated resource plan; the full set of documents and information submitted by an LSE to the CPUC as part of the IRP process.

Load Serving Entity (LSE) Portfolio: a set of supply- and/or demand-side resources with certain attributes that together serve the LSE’s assigned load over the IRP planning horizon.

Loss of Load Expectation (LOLE): a metric that quantifies the expected frequency of loss-of-load events per year. Loss-of-load is any instance where available generating capacity is insufficient to serve electric demand. If one or more instances of loss-of-load occurring within the same day regardless of duration Item 3
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60 are counted as one loss-of-load event, then the LOLE metric can be compared to a reference point such as the industry probabilistic reliability standard of “one expected day in 10 years,” i.e., a LOLE of 0.1.

Maximum Import Capability: a California ISO metric that represents a quantity in MWs of imports determined by the CAIS to be simultaneously deliverable to the aggregate of load in the IS ’s Balancing Authority (BAA) Area and thus eligible for use in the Resource Adequacy process. The California IS assess a MIC MW value for each intertie into the IS ’s BAA and allocated yearly to the LSEs. A LSE’s RA import showings are limited to its share of the MIC at each intertie.

Net Qualifying Capacity (NQC): Qualifying Capacity reduced, as applicable, based on: (1) testing and verification; (2) application of performance criteria; and (3) deliverability restrictions. The Net Qualifying Capacity determination shall be made by the California ISO pursuant to the provisions of this California ISO Tariff and the applicable Business Practice Manual.

Non-modeled costs: embedded fixed costs in today’s energy system (e.g., existing distribution revenue requirement, existing transmission revenue requirement, and energy efficiency program cost).

Nonstandard LSE Plan: type of integrated resource plan that an LSE may be eligible to file if it serves load outside the CAISO balancing authority area.

Optimization: an exercise undertaken in the CPUC’s Integrated Resource Planning (IRP) process using a capacity expansion model to identify a least-cost portfolio of electricity resources for meeting specific policy constraints, such as GHG reduction or RPS targets, while maintaining reliability given a set of assumptions about the future. Optimization in IRP considers resources assumed to be online over the planning horizon (baseline resources), some of which the model may choose not to retain, and additional resources (candidate resources) that the model is able to select to meet future grid needs.

Planned resource: any resource included in an LSE portfolio, whether already online or not, that is yet to be procured. Relating this to capacity expansion modeling terms, planned resources can be baseline resources (needing contract renewal, or currently owned/contracted by another LSE), candidate resources, or possibly resources that were not considered by the modeling, e.g., due to the passage of time between the modeling taking place and LSEs developing their plans. Planned resources can be specific (e.g., with a CAISO ID) or generic, with only the type, size and some geographic information identified.

Qualifying capacity: the maximum amount of Resource Adequacy Benefits a generating facility could provide before an assessment of its net qualifying capacity.

Preferred Conforming Portfolio: the conforming portfolio preferred by an LSE as the most suitable to its own needs; submitted to CPUC for review as one element of the LSE’s overall IRP plan.

Preferred System Plan: The Commission’s integrated resource plan composed of both the aggregation of LSE portfolios (i.e., Preferred System Portfolio) and the set of actions necessary to implement that portfolio (i.e., Preferred System Action Plan).

Preferred System Portfolio: the combined portfolios of individual LSEs within the CAISO, aggregated, reviewed and possibly modified by Commission staff as a proposal to the Commission, and adopted by the Commission as most responsive to statutory requirements per Pub. Util. Code 454.51; part of the Preferred System Plan.

Short term: 1 to 3 years (unless otherwise specified).

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61 Staff: CPUC Energy Division staff (unless otherwise specified).

Standard LSE Plan: type of integrated resource plan that an LSE is required to file if it serves load within the CAISO balancing authority area (unless the LSE demonstrates exemption from the IRP process).

Transmission Planning Process (TPP): annual process conducted by the California Independent System Operator (CAISO) to identify potential transmission system limitations and areas that need reinforcements over a 10-year horizon.

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Silicon Valley Clean Energy Board of DirectorsOctober 12, 2022

Silicon Valley Clean Energy Board of Directors
October 12, 2022